Venture Capitalists Retreat from Internet Healthcare, While Tech Giants Double Down
Beijing, August 25, 2024 – The long-dormant internet healthcare sector has recently experienced a surge of activity, with a mix of both setbacks and continued investment.
VCs Retreat as ProfitabilityRemains Elusive
The internet healthcare sector, once hailed as a promising investment opportunity, has seen a significant shift in recent years. Venture capital firms, onceeager to pour money into startups, are now retreating as profitability remains elusive.
One telling example is the recent performance of Ping An Healthcare, often considered the first internet healthcare stock. Despite achieving profitability for the first time in its sixyears on the Hong Kong stock market, the company’s revenue still declined by 5.8% year-on-year in the first half of 2024. This lackluster performance has dampened enthusiasm for the sector, with investors questioning the viability of long-term growth.
Another notable development is the acquisition of Good Doctor Online, a prominent internet healthcare platform, by Ant Group, the financial technology affiliate of Alibaba. This acquisition, however, is a far cry from the previous buzz surrounding potential acquisitions by tech giants like Baidu,JD.com, and Alibaba.
The lack of a sustainable business model continues to plague the sector. Many analysts believe that the current wave of consolidation and retrenchment is likely to continue until a more viable path to profitability emerges.
Tech Giants Double Down on Pharma E-commerce
Despite the challenges, internet healthcare continues to attract interest from major tech companies. While venture capitalists are pulling back, tech giants like Alibaba, JD.com, Meituan, Douyin, Xiaohongshu, and Kuaishou are doubling down on their investments. However, their focus is primarily on pharma e-commerce,leveraging their existing user base and platforms to drive sales of pharmaceuticals.
Good Doctor Online, once a pioneer in online medical consultations, has also succumbed to the pressure to find a sustainable business model. The company, founded on the principle of providing online medical consultations without selling pharmaceuticals, has faced financial difficulties in recent years. Theacquisition by Ant Group signals a shift in strategy, with Good Doctor Online now integrating its services into Alipay’s healthcare platform.
A Shift in Focus
The recent developments in the internet healthcare sector reflect a significant shift in focus. While venture capitalists are looking for more concrete signs of profitability, tech giants are focusingon leveraging their existing platforms and user bases to drive sales of pharmaceuticals. This shift highlights the challenges of building a sustainable business model in the internet healthcare space, particularly for companies that are not directly involved in the sale of pharmaceuticals.
The future of internet healthcare remains uncertain. While some companies are finding success in pharma e-commerce, the broader sector continues to grapple with profitability and a lack of a clear path to sustainable growth. The continued consolidation and retrenchment within the sector suggest that the search for a viable business model is far from over.
【来源】http://www.chinanews.com/life/2024/08-25/10274492.shtml
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