Teladok drips on report that Amazon is building a business to provide primary care for other companies

• Teladok fell 6% on Wednesday following a report from Business Insider that Amazon is quietly building a business to provide primary healthcare services to other large employers.
• According to the report, an extension of Amazon Care, the service will offer individual and doctor online doctor visits, which can be scheduled through a mobile app.
• Shares of health-insurance stocks also fell, with United Health Group and Signa down 2%.
• Visit Business Insider’s homepage for more stories.

---

Shares of Teladok and health-insurance providers fell on Wednesday, with a Business Insider report stating that Amazon is quietly building a healthcare service for employees of other large companies.

According to the report, an extension of Amazon Care, the service will offer individual and doctor online doctor visits, which can be scheduled through a mobile app. This service will bypass health-insurance plans and brokers and help reduce the cost of healthcare.

Citing people familiar with the matter, Business Insider reported that Amazon has already set up Zillow’s service. It is not clear how many other companies are involved.

Zilo confirmed it was an Amazon care service, but according to the report, nothing came of it.

read more: Amazon is getting deeper into the prescription-drug business. Here are 7 ways the tech giant is taking care of health, and 2 analysts think about why after a visit to the think tank.

Amazon’s pressure on healthcare services has been years away, most recently this year marked the launch of the e-commerce merchant giant’s pharma online pharmacy. The move significantly reduced pharmacy stocks such as CVS and Vagrains.

Something similar was played on Wednesday with Teledock, which helps facilitate a doctor’s visit through video calls. Shares of Teladok fell as much as 6%.

Health-insurance stocks also declined following the report; Shares of United Health Group and Cigna were down 2%. Shares of Amazon traded up about 1%.

read more: Bank of America says these 10 stocks of COVID-19 vaccine manufacturers, distributors and distributors will benefit as immunization efforts continue.