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TechCheck

Amazon & One Medical 11/8/23

TechCheck

CNBC

Disruptors, Tech, Technology, Cnbc, Management, Business, Faang, Investing

4.566 Ratings

🗓️ 8 November 2023

⏱️ 15 minutes

🧾️ Download transcript

Summary

Amazon is expanding its Prime membership program… and the new perk: access to doctors, primary care physicians, for a fee. Today, a check-up on Amazon’s continued push into health care.

Transcript

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0:00.0

Amazon is expanding its prime membership program and the new perk access to doctors primary care physicians for a fee a checkup on Amazon's continued push into health care.

0:12.0

It is Wednesday November 8th. Welcome to the Tech Check

0:15.8

podcast. I'm Deere Jre Drobosa. And I'm Mark Gilbert. Today Amazon is acting on its

0:21.4

purchase of one medical group.

0:23.4

It acquired the company last year for about $4 billion.

0:27.3

Now it is embedding one medical into a prime membership.

0:32.0

D, we've been talking about the potential for years, Amazon, and health

0:36.7

care. Yeah, there's always been this potential but with somewhat mixed results and this is a hard industry to crack into as we'll talk about but

0:46.0

This move with one medical by Amazon this is a way to really deepen those ambitions through its huge shopper base and the Prime Flywheel. So let's talk about that base and

0:56.5

flywheel because it's enormous. Third party estimates put the number of US Prime

1:01.1

subscribers at about 170 million. To Amazon, this is a huge opportunity

1:07.2

to upsell the One Medical Primary Care Service. And the key word here is upsell. It uses Prime to upsell music, audio books, right? A number of different things.

1:18.0

Right, and I just want to pause here for one minute and put that $170 dollars into perspective because that's more than half of that means that more than half of all Americans pay for prime which is a huge number.

1:31.0

More people have a prime account than voted in the 2020 election

1:34.3

which was you know a record turnout 160 million Americans voted. A hundred and

1:40.1

70 million Americans have prime. I mean it's I was trying to think of a service or you know or anything

1:47.2

that that more than half the country does let alone pays for. Yeah there's's Facebook, I suppose.

1:54.8

More than 200 million Americans have a Facebook account, but that's free.

1:58.5

So there's no credit card attached to that

2:05.0

whereas if you have a prime membership, they have all of your credit card details. It's not cheap either, 140 bucks a year. And to give another comparison,

2:09.0

around that same price point, Netflix, right, charges about $186 a year for a standard account and it

2:15.9

only has 77 million subscribers in the US and Canada so that's across two countries so

...

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