How The Tech Giants Are Innovating To Weather The Downturn

Published on October 6th, 2022
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Amazon Care Illustration
Amazon has expanded into the healthcare industry in recent years. mundissima / Shutterstock

Amazon is also diversifying into yet another new business, despite current economic uncertainty. It recently announced it has agreed to buy primary healthcare firm One Medical for US$3.9 billion (£3.2 billion). One Medical is a membership-based primary care provider that operates in 16 US markets.

This is not the first time Amazon has dabbled in healthcare. It teamed up with JPMorgan and Berkshire Hathaway four years ago to create Haven, which aimed to provide better healthcare and lower costs for their combined 1.2 million workers. That didn’t work out and was folded in 2021.

Amazon’s other activities in this area include PillPack, an online pharmacy purchased in 2018 for $753 million, and the creation of an in-house telemedicine service for its employees, called Amazon Care. Its latest foray with One Medical is a great example of the long and winding road of trial and error that a company often takes before hitting the jackpot of both making itself more resilient, while also disrupting a US$4 trillion market.

The former CEO of Intel, Andy Grove, wrote in reference to the first dot-com bubble: “We know that a downturn is no time to shy away from strategic spending … There is always too much of yesterday’s technology and never enough of tomorrow’s … Consequently, during this downturn, we did what may seem counterintuitive: we accelerated our capital investments.”

This is how companies invest their way out of downturns. And it’s why these companies often manage to emerge from a crisis stronger than ever.

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