Amazon In Healthcare:
Giant’s Strategy For
A $3 Trillion Market
Amazon could use its expertise to disrupt
everything from the pharmaceutical supply
chain to medicare management. We break
down the healthcare areas best suited for
an Amazon entrance.
Amazon is looking to dominate more than just online retail.
The e-commerce behemoth is serious about entering
healthcare, bringing with it a non-traditional business model,
infrastructure in logistics & computing, and customer love.
Many existing health giants are scrambling to compete, while
others are looking for ways to Amazon-proof themselves.
But this isn’t Amazon’s first attempt at transforming the space.
Between 1999-2000, the company began investing money into
Drugstore.com with plans to expand its e-commerce business
into the pharmacy space. It eventually ran into the existing
web of middlemen, regulators, and more, which brought its
ambitions to a halt.
Now, Amazon is trying again. Earlier this year, it announced a
joint healthcare venture with JPMorgan Chase and Berkshire
Hathaway. Before the collaboration, the company acquired
online pharmacy PillPack for nearly $1B.
But it’s not the only tech company expanding into healthcare.
Many are advancing in the space by playing to their strengths:
Apple’s patient-centric vision prioritizes consumers, while
Google continues to apply AI to everything from medical
devices to lifestyle management solutions. Microsoft is
building health data management on top of its cloud platform
Azure.growth in Q2’18, jumping 12% YoY.
In our Healthcare 2025
research briefing, we
asked which tech giant
would have the biggest
impact on healthcare.
Even before announcing
any concrete plans,
Amazon came in
second place — just
But as the e-commerce giant moves into the healthcare sector,
many questions arise:
What strategies does the company plan to use to enter new
target verticals, especially those with established leaders in
Which companies are