Amazon.Com, Inc (NASDAQ: AMZN) is exploring the possibility of venturing into the veterinary telehealth sector, a move seen as a direct challenge to Walmart Inc (NYSE: WMT), which has already introduced such services to its Walmart+ subscribers.
This development comes as the pet market becomes increasingly competitive, with retailers vying to expand their offerings.
Amazon's consideration of this new service comes on the heels of its expansion into the human health sector by acquiring One Medical. The company's dominance in the pet food and supplies market is well-established.
Still, it has yet to make significant inroads into pet health, a sector projected to be a primary growth driver in the $137 billion pet industry, CNBC reports.
The concept of veterinary telehealth mirrors human telemedicine, allowing pet owners to schedule virtual consultations with veterinarians and vet technicians.
Earlier in the year, Walmart collaborated with Pawp, a veterinary telehealth provider, granting Walmart+ members complimentary access to Pawp's services for a year.
Amazon might consider partnering with Pawp for its potential pet telehealth offering, especially given Pawp's successful collaboration with Walmart. Alternatively, Amazon could collaborate with other startups in the pet telehealth space or even develop its platform, similar to Chewy Inc (NYSE: CHWY) did during the pandemic.
Bloomberg Intelligence predicts the U.S. pet market to surge to $200 billion by the decade's end, with pet healthcare significantly contributing to this growth.
In 2023, Amazon let go of 27,000 jobs and remains engaged in the organizational restructuring of its various divisions, including grocery and logistics, while integrating artificial intelligence technology in every division.
Price Action: AMZN shares traded higher by 1.11% at $127.96 on the last check Tuesday.