We think the biggest company in the world will be a consumer health tech company.
This may sound crazy to some, but why shouldn’t this be true? Four of the top five biggest companies in the world are consumer companies, and healthcare is one of the nation’s biggest industries.
In fact, those massive consumer companies—Google, Apple, Facebook, Amazon (GAFA, for short)—are all working to move into healthcare because they realize the size of the opportunity: a $4 trillion American industry that makes up 20% of US GDP (and growing). This is five times the size of the advertising industry globally, which makes up almost all of Google and Facebook’s revenue, and part of Apple and Amazon’s. But healthcare is complex and not GAFA’s center of gravity. They may make acquisitions on the margins, but we don’t expect any of them to win the race to own healthcare.
On the other hand, the world’s biggest healthcare company (the 8th biggest company in the world), UnitedHealth Group (UHG), is not a tech company and is also seriously lacking in the consumer engagement department. While they’re technically a consumer company, selling half of their products direct to consumer (DTC), their poor consumer engagement—reflected in their NPS of 4—will always cap their potential and prevent them from becoming the biggest company in the world.
Our bet is the future’s biggest company, the consumer health giant, won’t be one of today’s big tech or incumbent healthcare companies. It will be a consumer-obsessed, healthcare-native tech company that reimagines what care can look like.
READ THE REST OF THE ARTICLE HERE – The Biggest Company in the World | Andreessen Horowitz (a16z.com)