I am now convinced $HIMS is so undervalued due to $AMZN launching Amazon Clinic last month nationwide in the US. I have done some research on the competitive landscape Hims is up against!
1) Amazon Healthcare offers “multiple telehealth provider groups” who each set their own rates for service. The company says those visits will cost an average of $75. And $35 for a messaging session. (No insurance is accepted). I went through the sign up process for this, and it was similar to making an Amazon purchase – simple and quick. It's definitely a large competitive threat. But the platform is cut and dry and doesn't offer the educational material or specialized treatments that $hims does. Additionally the brand may not “feel” trustworthy to some with their personal health information either, IMO. Amazon has work to do on their branding power in this space. Nonetheless, I have no doubt they will be a leader in the space.
2) Teledoc – works with all major insurance carriers. The website seems a decade or 2 old for the sign up process. $TDOC is a “stayer” in the space for the foreseeable future due to being grandfathered in with the insurance companies and regulators. The management has taken some large missteps recently in overpaying in purchasing other companies. I dont see them as a long term threat to $hims because their innovation is lacking, and management does not seem like a bootstrapping company like $hims. Not to mention, their branding is B2B, so I get the impression they are not investing in their image/branding, which could hurt them later.
3) $HIMS has a major advantage in this space of being one of the only major founder led companies that is a fearless innovator. While being a company focused only on healthcare, dominating multiple segments in a short period, and starting to branch out into multiple segments. Further, the B2C branding, I believe, will help them win in the long run as they build trust with the public. I believe any telehealth company should invest in building this trust the same way your local hospital builds trust with their local community.
Conclusion- $AMZN is their largest competitive threat, IMO, but as $NFLX has been able to survive/thrive in the streaming space against Amazon, I don't see any reason Hims can't do the same. I believe Hims is an exciting shopping experience where you can get expert information and personalized products at a great price. A great thing about $HIMS as well is the no judgment experience, discreet packaging, and the trustworthy reputation they're building when dealing with HIPPA. $AMZN's threat is convenience, price, deep pockets, and efficiency. However, when it comes to health, I think people will want the personalized service. It is not the same as ordering dog food and toilet paper online. One downside I've seen as well is that Amazon is basing part of their clinic business on collecting your data. I believe there will be a decent percentage of people who will not trust “big evil” Amazon with their personal health data. It is difficult to do a really good competitive analysis because some of this is still speculation since $hims and $amzn are so new in the space. A lot of segments are yet to be penetrated, and neither are able to accept insurance yet. I believe these 2 will end up taking most of the space while $tdoc gets left behind.
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