Amazon is considering offering veterinary telehealth as a way to compete with Walmart.

• According to sources, Amazon is considering providing veterinary telehealth as a way to compete with Walmart.
• Earlier this year, Walmart+ subscribers gained access to pet telehealth services at no cost.
• By the end of the decade, the U.S. pet market is predicted to reach $200 billion, with pet health being the main factor fueling this growth.

The company is considering expanding into veterinary telehealth as a way to compete with, which has recently started offering the service to Walmart+ subscribers, according to sources.

The e-commerce giant, which has expanded into human health with its acquisition of One Medical, is a dominant player in pet food and supplies. However, it has not yet invested significantly in pet health, which is expected to drive growth in the $137 billion pet market.

The discussions about Amazon's potential vet service are private, and the individuals involved declined to disclose their names.

Virtual appointments with veterinarians and veterinary technicians are available to pet parents through veterinary telehealth, which is similar to human telemedicine.

In November, Walmart's partnership with Pawp for veterinary telehealth services will end, just before the start of the pet holiday shopping season.

Amazon could collaborate with Pawp to launch a pet telehealth service for the holiday season, as Pawp has demonstrated its ability to scale with large retailers. Alternatively, Amazon could partner with one of the numerous pet telehealth startups or establish its own practice, as it did during the Covid pandemic.

Despite Amazon's efforts to expand its health-care business yielding mixed results, the company has indicated that the pet market is a top priority. In a Super Bowl ad earlier this year, Amazon showcased a heartwarming story of a rescue dog and how its family relied on Amazon for supplies.

Amazon declined to comment.

Pet health to fuel market boom

As the pet market grows increasingly competitive, retailers are rushing to expand their offerings, and Amazon is considering entering the veterinary telehealth market.

To remain competitive and increase their market share, companies such as Chewy and Walmart are expanding into pet health in addition to offering mass retail pet staples like food and toys.

By the end of the decade, the U.S. pet market is predicted to reach $200 billion, with pet health care being the main driver of this growth, as stated in research from Bloomberg Intelligence published this year.

Chewy has concentrated on expanding its pet prescription, insurance, and telehealth services, while Petco has utilized its physical storefronts to establish clinics and grooming centers, positioning itself as a top veterinary provider in the country.

Walmart has announced plans to launch a pilot pet services center in Dallas, Georgia, in partnership with PetIQ, offering a range of vet and grooming services.

If Amazon launches a pet telehealth program, it may follow Walmart's lead and provide it as part of its Amazon Prime membership.

Both Amazon Prime and Walmart+ offer unlimited free deliveries as their primary value proposition, but their paid subscription services also come with additional perks to entice customers and decrease attrition.

The perks that come with subscription services, such as Amazon Prime's GrubHub+ and Walmart+'s Pawp, are intended to differentiate the two offerings and maintain their competitiveness.

Lobbying for change

The veterinary telehealth industry has grown as a convenient alternative to in-person visits due to the pandemic, but some vets believe it could pose risks to pets.

Lori Teller, a former president of the American Veterinary Medical Association and a professor of telehealth at Texas A&M University, stated that pet telehealth can be advantageous, but she expressed apprehension about companies exploiting it for marketing purposes.

According to Teller, the emphasis on the product rather than the best thing for the animal can lead to trouble with delayed treatment or misdiagnosis. However, general advice and triage services provided by some professionals are beneficial, particularly for after-hours issues or busy days.

The complex web of state and federal regulations governing pet telehealth has hindered its expansion. This has led to a growing movement among veterinarians to lobby for changes in the regulations.

Mars Veterinary Health, a subsidiary of pet food and candy conglomerate Mars, and Chewy, are among the corporate giants that have funded efforts to improve pet health. Amazon may also join in.

According to Senate disclosure reports, Amazon and its affiliated businesses have spent approximately $430,000 on lobbying efforts related to "digital health oversight," "telemedicine," and the Food and Drug Administration, among other topics, so far this year.

It is uncertain if the efforts were aimed at the well-being of pets or humans, or if they were focused on both.