Amazon Care Shutdown: Here’s Why It Might Not Have Been a Total Failure

Amazon Care, the e-commerce giant’s telehealth platform, is shutting down. Amazon announced the news earlier this week, saying it would wind down the service over the next few months. While some people are debating Amazon’s traction with the platform, I believe there are other reasons it’s sunsetting. Let’s talk about it.

Amazon launched Amazon Care in September 2019 as a way for employees to receive medical care virtually. The service allowed users to consult with doctors via chat, video, or phone 24/ hours a day and provided prescriptions and home delivery of over-the-counter medications.

It’s no secret that Amazon has been trying to break into the healthcare industry for a while now. The company started by selling medical supplies and equipment on its site and then moved into developing its own health-tracking devices. More recently, it launched Amazon Care, a telehealth service that allowed employees to consult with doctors via text, chat, or video.

The service was available to Amazon employees in Seattle and Washington state, and the company had plans to expand it to other states. However, at least for now, those plans have been put on hold. The tech giant will shut down Amazon Care on December 31st of this year. So, why is Amazon shutting down its telehealth platform?

There are a few possible reasons. First, it’s possible the company wasn’t seeing enough traction with the service. Telehealth is a competitive market, and Amazon may have struggled to gain a significant foothold.

Second, Amazon Care may have been too expensive for the company to maintain. The platform required employees to pay a monthly fee, which likely deterred some people from signing up.

Third, Amazon Care may have simply been a test run for the company. Amazon is no stranger to experimentation; perhaps this was just an experiment that didn’t pan out in the way the company had hoped. Or maybe it did. Amazon recently acquired One Medical, a 24-hour on-demand telehealth platform. So, Amazon may be simply consolidating its efforts in this area. Why hang on to a prototype when you can have a fully functional, profitable model at your disposal? This move, in my opinion, signals Amazon’s resolve to stay in the healthcare space long-term.

So, while Amazon Care may have been a failure in some ways, it’s also possible that it was a success in others. Only time will tell the company’s ultimate goal with this venture. But one thing is sure: Amazon is not giving up on healthcare anytime soon.

Do you think Amazon made the right decision in shutting down Amazon Care? Why or why not? Let me know in the comments. Thanks for reading!