Wuhan Star Sets Sail: Amazon Deploys Healthcare Premium Entry, Profitability Continues to Improve

Some time ago, Amazon stated that it plans to acquire One Medical to expand the medical industry and enter the market at a premium.

One Medical highlighted in its January 2022 investor presentation slides that approximately 45% of platform members will use its online website or mobile app to access its services at least once a month.

With Amazon's acquisition of One Medical, Amazon Care is well positioned to expand its employer customer base. Previously, Amazon Care's growth was limited by a number of real-world issues: AMZN struggled to provide a good mix of virtual and in-person care without meaningful physical presence in major U.S. cities.

The acquisition of One Medical may help solve this problem, because One Medical has offices in markets such as New York, San Francisco and Los Angeles, which is a good solution to the problem that Amazon care services cannot be implemented.

Second, One Medical has the potential to expand aggressively with Amazon's backing. According to AMZN's July 21, 2022, transaction announcement press release, One Medical has a physical presence in more than 20 markets in the country.

In its January 2022 investor presentation, One Medical also highlighted that its brick-and-mortar primary care coverage in the U.S. is around 40%. In other words, One Medical has a huge growth advantage, as seen by the opportunity to launch brick-and-mortar primary care facilities in new markets.

Third, there is a potential synergy between Amazon Prime and One Medical. We all know that Amazon has a huge base of Prime members.

This means that neither Amazon nor One Medical has ruled out the possibility of integrating the Prime and One Medical platforms in some way, which would increase the stickiness of current Amazon Prime members or attract new Prime members, which would be another big surprise for Amazon. Considerable income.

As the revenue contribution from services such as AWS (Amazon Web Services) and advertising increases over time, Amazon is on its way to becoming a growing profit margin company.

Amazon's acquisition of One Medical is a big step in the direction of healthcare and one of the company's plans to reap higher profits from the new service. Amazon's valuation will see a positive revaluation as profitability improves.