One of the reasons investors love Amazon (AMZN) is that the company is relentless when it wants to do something.
And while investors seem to love Amazon less these days than they have in the past -- the stock is down nearly 40% year to date -- that relentless nature hasn't gone anywhere.
Less than three months after the company announced that it is shutting down its primary care delivery business Amazon Care by the end of the year, the company is announcing its next foray into healthcare.
Amazon's move isn't surprising. The company spent $3.9 billion to purchase primary care network One Medical in July, joining retail giants like CVS Health (CVS), and Walgreens (WBA) looking to disrupt the healthcare and primary care space.
But amid its falling stock price, and after reports that it is laying off 10,000 employees, one could understand if Amazon paused to reassess. Instead, it is going full steam ahead.
Amazon Introduces Clinic
Amazon Clinic is a virtual health service that will operate in 32 states and provide virtual care for more than 20 common health conditions.
"Amazon Pharmacy and One Medical (once the deal closes) are two key ways we’re working to make care more convenient and accessible," said Dr. Nworah Ayogu, chief medical officer and GM for Amazon Clinic. "But we also know that sometimes you just need a quick interaction with a clinician for a common health concern that can be easily addressed virtually."
The message-based virtual care service will connect customers with "affordable" virtual care options for common conditions like allergies, acne, and hair loss.
Customers will be able to select their condition, then choose their preferred provider from a list of telehealth providers. After taking a short intake questionnaire, customers will be able to connect to clinicians directly through a secure message-based portal.
After the virtual consultation, the clinician sends a personalized treatment plan, including any necessary prescriptions.
When customers seek treatment, they will be able to see how much a consultation will cost and when they can connect with the provider. The prices are set by providers, not Amazon Clinic.
Amazon on the Ropes?
Amazon has had a rough 2022 as post-pandemic spending habits haven't continued on the same trajectory they were on during the height of the pandemic.
Amazon isn't the only company having to right-size its retail operations, but tech companies have been especially hard hit, leading to tens of thousands of layoffs across the industry.
This week, the New York Times reported that Amazon is planning to lay off about 10,000 people during the holiday season, normally a time when the company stocks up on warehouse workers to meet delivery demand.
Last week, The Wall Street Journal reported that Amazon, which became the first public company in history to shed more than $1 trillion in market value earlier this week, will undergo a cost-cutting review led by CEO Andy Jassy over the coming months, with a focus on its voice-assistant Alexa business.
Amazon issued a disappointing holiday revenue forecast in late October and unveiled slowing growth in its lucrative Web Services business, both of which clouded a better-than-expected third-quarter earnings report.
Jassy told investors at the time that while he was "encouraged" by the third quarter progress, "we recognize there's still a lot of opportunity to continue to improve productivity and drive cost efficiencies throughout our networks."
