Category: Insurance

AmazonGo for Healthcare?

AmazonGo for Healthcare?

A New Heavyweight Healthcare Entrant

The recently announced non-profit joint venture between Amazon, J.P Morgan and Berkshire Hathaway was notably scarce on detail. We previously wrote about how Apple is well-positioned to “consumerize” healthcare. The good news is that there is room for others to add value to the healthcare ecosystem.

Trust, Payments & Price Discovery

If we were to fast forward 5-10 years its easy to imagine that Amazon’s contribution to the “NewCo” healthcare joint-venture will borrow heavily from the company’s experience in online retail where three key elements may come into play: trust, price discovery and payments.

1.) Trust: Since its founding Amazon has developed a deep trust with consumers. Consumers trust Amazon to securely store payment-related information, to offer competitive pricing, to provide a wide variety of goods and services and to deliver goods and services in a secure and timely manner.

2.) Price Discovery: Transparent pricing is a key value-added element of Amazon’s platform as it enables consumers to quickly assess value. Further, Amazon has extended the visibility and reach of independent third-party sellers (3rd party sellers generated $32 billion on Amazon in 2017, a 39% increase over 2016), by allowing them to list their businesses.

AMZN 3rd Party Revs
Amazon Third-Party Revenue and Total Revenue

It is the “Price Discovery” category where we believe the NewCo venture can create the most value. It could on-board independent healthcare providers such as neighborhood urgent care centers – forcing them to disclose pricing as a pre-requisite for listing. This would be a “win-win” for providers and consumers. Healthcare providers would benefit from listing their businesses and consumers win by having greater choice and pricing transparency.

NewCo Similarities
NewCo JV could create value in a similar fashion as AMZN’s retail platform

3.) Payments: consumers and businesses have widely adopted and trust Amazon’s payment platform. This technology could easily be leveraged within NewCo’s platform to facilitate payment transactions between interested parties.

AmazonGo for Healthcare?

How far back in the healthcare stack will Amazon/ NewCo participate? The more information Amazon/ NewCo collects about consumers, the more friction can be removed from the process. One example is patient check-in. It is easy to imagine how Amazon/ NewCo could quickly become the industry standard for Electronic Medical Records (“EMRs”) enabling patient check-in to consist of a phone swipe on an electric reader. AmazonGo for healthcare?

Meet Luminar Technologies – the LiDAR Company Powering Toyota’s Autonomous Vehicle Program<span class="badge-status" style="background:red">Premium</span> 

Meet Luminar Technologies – the LiDAR Company Powering Toyota’s Autonomous Vehicle ProgramPremium 

What Is A LiDAR System? Light Detection And Ranging (“LiDAR”) sensors are detection and survey systems to estimate the proximity of a target object. LiDAR sensor systems consist of four primary elements: 1.) Lasers 2.) Scanners 3.) Photodetector receivers  4.) GPS navigation systems. LiDAR systems enable autonomous vehicles (or robots), to observe the world with: a.) Continuous 360…

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Apple Is Well-Positioned to Lead A Consumer-Driven Healthcare Revolution<span class="badge-status" style="background:red">Premium</span> 

Apple Is Well-Positioned to Lead A Consumer-Driven Healthcare RevolutionPremium 

Welcome to Apple Health Apple recently announced that this spring it will release an update to its iOS for iPhones and iPads that will include a new “Health Records” feature that will provide access to personal medical records covering allergies, conditions, immunizations, lab results, medications, procedures and vitals. Given the ubiquity of the iPhone we…

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We’ve Been Critical of Xerox Since 2012

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We have been critical of Xerox’s (tkr: XRX) senior leadership since 2012 when I wrote a letter to former Xerox CEO Ursula Burns advocating a strategic M&A plan (read my letter here). We agree with Messrs. Icahn and Deason that XRX put itself up for sale. Listen to our recent CEORater Podcast on the subject: Ep. 114: We’ve Been On The Xerox Case Since 2012

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PII-Centric Organizations That Don’t Take CyberSecurity Seriously Ought Not Be in BusinessPremium 

I never thought I would advocate litigation, but perhaps that’s what needs to happen. PII (“Personally Identifiable Information”)-centric organizations (think healthcare providers and online retailers for example, any organization that stores credit-card numbers, social security numbers, etc.), that choose to neglect CyberSecurity and subsequently suffer data breaches where sensitive customer data is exposed ought to…

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Cybersecurity Overheated? LPs Beware<span class="badge-status" style="background:red">Premium</span> 

Cybersecurity Overheated? LPs BewarePremium 

It feels to us that the Cybersecurity venture market is a bit overheated (listen to our recent podcast on the subject, Ep. 104 CEORater Podcast). The National Venture Capital Association does not break out the Software industry by subsector, therefore it’s difficult to find precise numbers. However, our unscientific analysis (industry publications, reported deal flow,…

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Automobiles as a Service (AaaS); Uber Completes Tender Offer

Automobiles as a Service (AaaS); Uber Completes Tender Offer

Cadillac‘s “BookbyCadillac” premium automobile subscription service (we refer to as AaaS), sits comfortably between the traditional car ownership model and the pure rideshare model (Uber, Lyft, Waymo). Priced at $1,500/month (plus $500 initiation fee), we don’t believe that Cadillac’s bundled subscription service is a good value – flexibility and convenience come at a price. Listen to CEORater Podcast Ep. 102 to learn more.

In other news, Uber completed its tender offer to an investor group led by SoftBank. Listen to CEORater Podcast Ep. 103 to learn more.

The Wall Street Journal published Uber’s financials.

Uber Financials