Amazon is shutting down its hybrid virtual, in-home care service after spending years developing it, a surprise move that underscores its challenges as it moves into healthcare.
According to an email sent to employees by Amazon’s senior vice president of healthcare, Neil Lindsay, Amazon Care will end on December 31.
Amazon Care was launched in 2019 for Seattle-based Amazon Washington state employees who were trial users before the company rolled out the service to workers in all 50 states last year.
The service connects patients with doctors and nurses who can provide treatment 24 hours a day. It has no brick-and-mortar stores but offers on-site vaccinations and flu testing in several cities, including Seattle and Washington, D.C.
Amazon’s decision to stop using Amazon Care was all the more surprising, as the company said in February that it planned to expand in-person care services to 20 more cities. Last summer, Amazon also began offering the service to private employers across the country.
In an email to employees, Lindsay wrote that Amazon listened to employer feedback and worked to improve Amazon Care.
Amazon Care isn’t the company’s first failed health effort. The tech and retail giant also has short-term partnerships with JPMorgan Chase and Berkshire Hathaway to boost healthcare costs. The three corporate giants formed a separate company called Haven to focus on improving care and managing costs but disbanded last year.
Despite the setback, Amazon hasn’t given up on its focus on healthcare. Last month, it announced plans to spend $3.9 billion to acquire primary care organization One Medical, a membership-based service that offers virtual care and in-person visits. As of March, One Medical had approximately 767,000 members and 188 medical offices in 25 markets.
Neil Saunders, MD of GlobalData Retail, said Amazon had taken a more aggressive stance on getting out of the way, given that it is now investing in other areas of health.