In our bigger is better corporate culture, it’s appropriate that Google, primarily known for its ability to search the web for data, would buy Fitbit, primarily known for its ability to search our bodies for data. The explicit benefit for Google is a powerful edge in the marketplace of clinical trials, health plans and employer benefits, according to Mario Aguilar and Erin Brodwin of StatNews. Google claims it is buying Fitbit for its devices, not its data, though the data could be a goldmine.
Google clearly sees its acquisition as valuable, paying $2.1 billion for Fitbit. In the employee benefit space, there’s revenue from employers who are looking to offer new benefits, like Fitbits, to their workers. In the clinical trial space, there’s also large revenue opportunities. Fitbits can offer help with heart, sleep and respiratory research.
Google already has a health studies app. It lets people with Android cellphones participate in medical research.
Fitbit has large tentacles in the employer and health insurance markets. Businesses offer workers its fitness trackers. Workers also use its health coaching programs and its Covid-19 symptom tracking platform. Several dozen Medicare Advantage plans offer Fitbits to their members.
Of course, if Google were to use data from Fitbits, it would give it a greater competitive edge with others in the space. Google is claiming that it is not interested in the data, likely because acquiring this new data source is a concern for regulators. There are antitrust issues. Still, it appears that Google is free to use the Fitbit data, so it’s fair to assume it will.
Here’s more from Just Care:
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