Uber, a pioneer in the on-demand economy, could be worth as much as $120 billion as it prepares for an initial public offering this year.
Heal has raised $70 million from such investors as the former Qualcomm executive chairman Paul Jacobs, Tull Investment Group and the singer Lionel Richie, while DispatchHealth has raised $36 million from such investors as Questa Capital and Alta Partners.
But the potential to be the next “unicorn” — a start-up valued at $1 billion or more — has created a crowded field.
The popularity of the I.V. Doc prompted a flurry of smaller companies, like IVDrips, Drip Hydration and the Hangover Club/NutriDrip, to offer similar services — sometimes at cheaper prices. To fend off competition, the I.V. Doc recently expanded to offer injectable drugs, like Botox and Restylane, as well as postoperative care for plastic surgery.
Large tech companies are seeking a bigger share of the more than $3 trillion spent annually on health care in the United States. Amazon, which has been making an aggressive push into health care, announced last year that it would buy PillPack, an online service that organizes and delivers prescription medications. Apple and Alphabet, Google’s parent company, have also made significant acquisitions as they accelerate their efforts on new technologies for doctors, patients and consumers.
“Health care is a $3.5 trillion industry — who wouldn’t want a piece of that?” said Jeff Becker, a senior analyst and health care IT expert at Forrester.
But start-ups are facing challenges on their path to financial viability. Because mobility brings extra liability, one of the biggest roadblocks is insurance for themselves. Problems can crop up on the road, like traffic accidents, or in a customer’s home, like an equipment malfunction. Or perhaps a doctor, lacking sufficient equipment, makes an incorrect diagnosis. These headaches can make it difficult for start-ups to find proper protection.
Article source: https://www.nytimes.com/2019/02/24/business/on-demand-health-care-delivery.html