Amazon Looks to Be Third-Time Lucky in Healthcare With Diagnostics Foray

AMAZON'S LATEST MOVE to enter the diagnostics segment could mark a turning point in its healthcare ambitions, following two underwhelming attempts in the e-pharmacy and teleconsultation segments.

- S SHANTHI

Industry executives are of the view that since the diagnostics sector has potential for growth, it may finally provide the e-commerce major the runway it needs to build a meaningful presence in the healthcare business.

The diagnostics space, which gained prominence during the pandemic, is undergoing rapid transformation, driven by consumer demand for convenience, affordability and tech-led innovations. Analysts say Amazon's entry could have a cascading effect on the broader healthtech ecosystem, particularly by invigorating startups and strengthening investor confidence.

"Diagnostic business is capital-intensive and early-stage investors have a liking for asset-light business and hence, there was low offtake in the diagnostic business. However, it is changing and investors are investing in specific diagnostic companies," said Anil Joshi, managing partner, Unicorn India Ventures, which has backed startups such as FutureCure and Sascan.