Apollo's digital platform move may fuel consolidation, benefit consumers

Apollo will merge its online and offline pharmacy businesses (excluding hospital pharmacies) and telemedicine verticals into a single entity called Apollo HealthCo

The move by Apollo Hospitals Enterprises, the country’s largest health care company, to create India’s biggest omni-channel digital health platform is likely to fuel more consolidation in the sector, apart from bringing down prices for the consumer.

The longer-term trend, say analysts, will be to have two to three large players in the space, while in the short to medium term, it will push both online and offline health care services companies to develop an omni-channel presence or get acquired by a bigger fish.

It is also likely to make the customer acquisition cost of players like 1mg or PharmEasy more expensive.

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