- Amazon is considering offering veterinary telemedicine to compete with Walmart, people familiar with the matter told CNBC.
- Walmart began offering free access to pet telemedicine to Walmart+ subscribers earlier this year.
- The U.S. pet market is expected to grow to $200 billion by the end of 2010, and pet health is driving the boom.
Amazon is considering expanding into veterinary telemedicine in its latest effort to compete with Walmart, which began offering the service to Walmart+ subscribers earlier this year, people familiar with the matter told CNBC.
The e-commerce giant has already expanded into human health with its acquisition of One Medical, and is a strong player in pet food and supplies. But the company has so far failed to make meaningful investments in pet health, which is expected to drive growth in the $137 billion pet market.
The people who discussed Amazon’s consideration of veterinary services declined to be named because the discussions are private.
Veterinary telemedicine allows pet parents to meet virtually with a veterinarian or veterinary technician. This service is similar to telemedicine for humans.
Earlier this year, Walmart signed a deal with veterinary telemedicine provider Pope to give Walmart+ subscribers a free year of access to the startup’s membership. This offer expires on November 19th, less than a week until Black Friday, and just in time for the start of the pet holiday shopping season.
Amazon could turn to Pawp to facilitate a potential pet telehealth service in time for the holidays, as Pawp has already proven it can work with major retailers. Amazon could also partner with one of the dozens of other pet telemedicine startups on the market or build its own practice. That’s what Chewy did when it started offering the service during the coronavirus pandemic.
Amazon’s efforts to expand its health care business have had mixed results, but the company has signaled that the pet market is a priority. Earlier this year, the company spent millions on a heartwarming Super Bowl ad featuring rescue dogs and their families turning to Amazon when they needed supplies.
Amazon declined to comment.
Amazon could move into veterinary telemedicine as the pet market becomes more competitive and retailers race to expand their offerings.
As more mass retailers offer pet essentials such as food and toys, companies like Chewy, Walmart, and Petco are expanding into the pet health space to stay competitive and increase market share. Masu.
The U.S. pet market is expected to grow to $200 billion by the end of 2010, with pet health care driving the boom, according to a Bloomberg Intelligence study released earlier this year.
Chewy has focused on strengthening its pet prescription, insurance, and telehealth services. Petco leverages brick-and-mortar stores to develop clinics and grooming centers, making it one of the nation’s leading veterinary providers.
Beyond its partnership with Pope, Walmart recently announced plans to open a dedicated pet service center in Dallas, Georgia, as a pilot for what could be a larger program, the company previously told CNBC. Told. The center will be staffed by employees of veterinary care and pet products company PetIQ and will offer a variety of veterinary and grooming services, including checkups, teeth cleanings and haircuts.
If Amazon moves forward with its pet telemedicine program, it could take a similar approach to Walmart and offer it through its Amazon Prime subscription service.
While the core of Amazon Prime and Walmart+’s value proposition is unlimited free delivery, the paid subscription services also offer a number of competing benefits designed to incentivize sign-ups and reduce churn.
The benefits that come with subscription services, such as Amazon Prime’s GrubHub+ service and Walmart+’s Pawp addition, are also designed to differentiate the two services and keep subscription services competitive.
Veterinary telemedicine was born out of necessity during the pandemic, and the industry has grown as a convenient alternative to in-person visits. However, some veterinarians say this practice can be dangerous for pets.
Dr. Lori Teller, past president of the American Veterinary Medical Association and professor of telemedicine at Texas A&M University, says pet telemedicine can be beneficial, but it could also be used to promote products. He said he was concerned about companies.
“Delays in treatment and misdiagnosis can cause problems, especially when the focus is on the product rather than what’s best for the animal,” Teller told CNBC in a recent interview. “Any service that can provide general advice or a triage service would be beneficial to the profession and definitely helps with out-of-hours issues or if you’re having a really busy day.”
The maze of state and federal laws governing pet telemedicine, and what veterinarians who have never met the animals in person are allowed to do, is an impediment to the expansion of pet telemedicine. This led to increased lobbying efforts to change the regulations.
Major companies such as Chewy and Mars Veterinary Health, a subsidiary of pet food and candy conglomerate Mars, have helped fund these efforts. Amazon may similarly abdicate its responsibility.
So far this year, Amazon and its affiliates have spent about $430,000 on lobbying efforts targeting digital health surveillance, telemedicine, and the Food and Drug Administration, among others, according to a Senate disclosure report.
It’s unclear whether the efforts are aimed at pet or human health, or both.