In the years after covid, one of the best places to be in business, it seemed, was the delivery prescription business.During those years, so many of us were reminded how important it was to look after both our own health and the health of others. It became abundantly clear that eating right, staying fit, taking our vitamins, and spending time doing productive things to stay occupied were a productive means of looking after ourselves. Especially during an uncertain time.Related: Another popular fast-food chain files for Chapter 11 bankruptcyAnd in the early 2020s, it seemed the rush to market involved nearly every major player, pulling from both the retail and consumer goods space as well as the healthcare industry.Perhaps no retailer has concentrated more robust efforts than Amazon (AMZN) , which began offering prescription shipment services via its Amazon Pharmacy. It also acquired OneMedical in 2022 for nearly $4 billion, expanding its brick and mortar presence to reach around 200 clinics and 800,000 patients.Pharmacies like CVS (CVS) now have delivery prescription services, with many locations offering Minute Clinics for more straightforward healthcare offerings like diagnostics and vaccinations. Walmart (WMT) tried its hand at health, opening dozens of healthcare clinics under the Walmart Health banner. Similar to the CVS-styled Minute Clinics, Walmart’s healthcare ambitions went far beyond pharmaceutical needs. The retailer’s ambitions included high-functioning clinics whereby customers could pop by a plaza and be seen by a healthcare professional for a variety of ailments and needs. Some of those services included:Same-day primary carePrimary care by appointmentDentalBehavioral healthLabsX-raysCommunity healthTelehealth
A sign for Walmart Pharmacy is seen inside a Walmart in Washington, DC, on Nov. 2, 2022. (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)BRENDAN SMIALOWSKI/Getty Images
Expanding health care offerings isn’t easyBut expansion into the large and often unwieldy healthcare space is anything but straightforward. It requires time, resources, man power, and often billions of dollars. There’s an immense graveyard of abandoned ventures and lost initiatives in the healthcare space.Earlier in 2024, for example, Walmart suddenly shut down its entire healthcare operations, citing poor performance. More Walmart: Walmart raises the price of a key serviceWalmart launches cheap brand customers will loveSome Walmarts make surprising self-checkout change”We determined there is not a sustainable business model for us to continue,” Walmart said in part.Amazon has abandoned numerous healthcare ventures, including Halo, a wearable fitness tracker, and Amazon Care, its own version of in-person and tele-health care.CVS, which is more native to the healthcare space, has seen significant losses with its Oak Street Health venture (which it acquired in 2023 for $10.6 billion). Though it still plans to open between 50-60 new clinic locations this year alone.Key healthcare startup shutting downIf some of the largest retail giants can’t seem to upstart new healthcare initiatives successfully, it shouldn’t come as a shock when nascent companies struggle in the industry. Related: Walmart bringing back iconic brand that solves a major issueThis is the case with the digital startup Care/of, a vitamin delivery company founded in 2016. Care/of surveyed customers about their lifestyle and goals, then customized a plan of supplements and vitamins for them based on their priorities. In 2020, Bayer (BAYRY) acquired a 70% stake in Care/of, valued at the time of around $225 million.A New York Department of Labor filing indicated that the Bayer subsidiary planned to lay off over 140 people by early July after a “funding loss.”Bayer director of strategic communications Christin Miller said the company would be “ceasing further investment in Care/of,” which would “allow Bayer to better invest in future innovations that help people manage their personal health.” The official Care/of website no longer accepts orders; the landing page simply offers a farewell message, telling customers “all subscriptions will be canceled effective June 17th, and we will no longer be accepting new orders. Orders placed before June 17th should be packed and shipped to you.”
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Care/of added that it is pursuing other options to serve its customers but had nothing additional to add at the time of this writing. Related: Veteran fund manager picks favorite stocks for 2024