Amazon Eyes Entry into Veterinary Telehealth, Taking on Walmart in the Growing Pet Care Market

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In a move that pits it against retail giant Walmart, Amazon is considering entering the veterinary telehealth market. Amazon, a key player in the pet food and supplies sector, is exploring this expansion as a strategic step to tap into the burgeoning $137 billion pet market. This comes on the heels of Walmart’s venture into the same service for its Walmart+ subscribers, signalling a competitive landscape in the pet healthcare industry.

Amazon’s foray into veterinary telehealth follows its significant strides in human health, marked by the acquisition of One Medical. Veterinary telehealth mirrors its human counterpart, offering virtual consultations with veterinarians and veterinary technicians. This remote service has gained popularity, especially after the COVID-19 pandemic, as it provides a convenient alternative to in-person visits. Walmart has partnered with Pawp, a veterinary telehealth provider, offering its subscribers free access to the startup’s membership for a year. Amazon might follow suit, collaborating with Pawp or other telehealth startups or possibly building its practice, as online pet retailer Chewy did during the pandemic.

In terms of market dynamics, companies like Chewy, Walmart, and Petco have been expanding their pet health offerings to maintain a competitive edge and increase market share. The U.S. pet market is projected to grow to $200 billion by the end of the decade, with pet healthcare being a significant driver of this growth. Companies have been innovative in their approaches, with Chewy focusing on prescriptions, insurance, and telehealth and Petco leveraging its physical stores for clinics and grooming centers.

A potential Amazon pet telehealth program could be integrated into its Amazon Prime subscription service, mirroring Walmart’s approach with its Walmart+ subscription. These subscription services are integral to both companies’ strategies to incentivize sign-ups and reduce customer churn, with additional perks serving as differentiators in the competitive market.

Despite the growth and convenience of veterinary telehealth, concerns about the quality of care and the potential for misdiagnosis or delayed treatment have been raised. Dr. Lori Teller, a former president of the American Veterinary Medical Association and a professor of telehealth at Texas A&M University, has emphasized the importance of the service when used for general advice and triage but warns of the risks when the focus shifts to product sales over animal welfare.

The expansion of pet telehealth has been somewhat hindered by a complex web of state and federal regulations, with lobbying efforts underway to amend these rules. Companies like Chewy and Mars Veterinary Health have been active in these lobbying efforts, with Amazon potentially joining the fray. Senate disclosure reports show that Amazon and its affiliated businesses have spent approximately $430,000 this year on lobbying for “digital health oversight,” “telemedicine,” and the Food and Drug Administration. However, whether these efforts are directed toward pet or human health is unclear.

As Amazon considers venturing into the veterinary telehealth market, it underscores the pet care industry’s growth potential and competitive nature. The move could significantly reshape the pet healthcare landscape, providing parents with more options for convenient and accessible care. However, the quality of care must remain paramount, ensuring that pets receive the best possible treatment while navigating the evolving landscape of veterinary telehealth.