You Already Know Amazon Is Big … But Do You Know How Big?

From its humble roots as an online bookstore, Amazon has grown to dominate the global retail market — and turn its founder into one of the richest people on the planet.

You’re probably also somewhat familiar with the tech giant’s foray into streaming content, tablets, smart assistant devices, and other niche sectors of the economy.

But this mega-corporation is involved in much more than meets the eye.

The healthcare hustle

Although the American healthcare industry has plenty of problems, not everyone is convinced that Amazon will make things better with its nearly $4 billion acquisition of provider One Medical.

Now that the deal is final, the company is set to begin providing medical services through more than 200 physical clinics as well as through its extensive online marketplace.

The One Medical purchase also stands to create new or stronger relationships between Amazon and hospitals around the world.

The acquisition comes several years after Amazon purchased an existing online prescription delivery company that it later renamed Amazon Pharmacy. It also worked on a low-cost healthcare business called Haven, but that went under in 2021.

The acquisition model

A common theme among many of the new areas being conquered by Amazon is that the company relies on purchasing smaller companies or creating new versions of existing products rather than investing in innovation and research of its own.

Since Amazon has so much money at its disposal, this is a model that allows it to keep growing at the expense of other businesses.

One Medical is only the third-largest acquisition in Amazon's history. Significantly larger sums were spent to purchase Whole Foods and MGM.

The company has a reputation for making smart purchases, but it remains to be seen whether any future missteps will derail its current strategy.

Chris Agee February 23rd, 2023

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