One less "brother"?It is said that Jingdong has abolished the family medicine division, and only a small number of employees have been transferred internally
Like other Internet giants, JD Health is also looking for a new profit model.
JD faces new issues amid attendance crackdown. Liu Qiangdong's statement, "If you don't strive, you're not my brother," has sparked controversy.
On May 28, news of layoffs at JD surfaced again. Media reports indicate that JD Health has dismantled its Family Doctor Division, with the former head, Tan Tianhong, being reassigned, some employees leaving, and only a few securing internal transfers.
In early 2020, the sudden COVID-19 pandemic boosted the online economy, with people confined at home turning to online channels for necessary medications. Platforms like Alibaba Health, JD Health, Haodf.com, and Ping An Good Doctor saw traffic surges. JD Health CEO Xin Lijun noted that JD Health's pharmaceutical sales more than doubled during the pandemic.
Recognizing market demand, Alibaba, JD, and Ping An quickly entered the internet health sector. Baidu, which had scrapped its medical division three years earlier, re-entered in March of that year with Baidu Health (Beijing) Technology Co., Ltd., launching live consultations with renowned academicians Zhong Nanshan and Li Lanjuan. Ping An Good Doctor and Alibaba Health both underwent leadership changes in 2020 to strengthen their competitive edge in medical resources and operational capabilities. JD Health continued to focus on pharmaceutical e-commerce. With healthcare reforms and bulk purchasing policies limiting hospital sales of imported drugs, internet platforms became a key channel for these medications.
Later, JD sought new opportunities within JD Health, leading to the creation of JD Family Doctor in August 2020. Officially, it offered 24/7 health consultations, unlimited specialist consultations, follow-up prescriptions, appointments at over 2,700 hospitals, 48-hour online expert consultations, proactive follow-up services, health information collection and archiving, and health plan formulation. Users could have unlimited inquiries with doctors and one-on-one remote consultations with top physicians.
At the time, JD aimed to make the Family Doctor Division a core department parallel to the Internet Healthcare Division, with the head reporting directly to JD Health CEO Jin Enlin. However, intense competition made it difficult for family doctor services to generate significant revenue, and internet healthcare companies faced cost control and profitability pressures while pursuing scale.
Like other internet giants, JD Health is seeking new profit models, attempting to integrate online and offline resources and engage in deep collaboration with medical institutions, but with limited success. Additionally, regulatory oversight of the internet healthcare industry is tightening, imposing higher compliance requirements. Overall, JD Health has struggled to find new profit growth points, a critical issue in the fast-paced internet industry.
A source close to JD Health's top management said, "A lot was invested, but there was no profitable model or other value, so it was abandoned."
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