In a significant move that’s turning heads in the fertility benefits industry, e-commerce giant Amazon has reportedly chosen Maven Clinic to replace Progyny as its primary fertility benefits provider. This development, highlighted in a recent J.P. Morgan analyst report, marks a notable moment in the competitive landscape of digital health and family care services.
Anu Duggal, an investor in Maven through Female Founders Fund, confirmed the news in a LinkedIn post, stating: “A significant milestone for Maven Clinic today — with their first analyst report highlighting a notable shift in the industry: Amazon has chosen Maven to replace Progyny as their primary fertility benefits provider. This marks a pivotal moment, solidifying Maven’s leadership in digital health and redefining the future of family care.”
While Progyny did not explicitly name Amazon in their announcement, the J.P. Morgan report strongly suggests the identity of the departing client. According to the report, “PGNY faced another blow to the model today, as they announced that a large client plans to terminate its services agreement with the company. The client represented roughly 13% of 2023 revenue ($130M), and 670k lives, and the termination will become a detriment to the model beginning in January 2025.”
The report further speculates on the client’s identity, stating, “While PGNY did not disclose the client, due to the magnitude of lives lost, we believe it is potentially Amazon, which comprised ~15% of PGNY’s revenue in 2019 (the last time it was broken out in public filings).”
This shift represents a significant win for Maven Clinic, a company that has been gaining traction in the digital health space with its focus on women’s and family health over the past couple of years. For Progyny, however, the loss of such a substantial client is expected to have material impacts on their financial outlook. J.P. Morgan analysts have revised their projections for Progyny, reducing their 2025 revenue estimate by approximately $120 million and their EBITDA estimate by about $21 million.
So what do we learn from this? Well. The move by Amazon to switch providers underscores the increasing importance of comprehensive and innovative fertility and family-building benefits in employee packages. But it also highlights the growing competition in this space, with newer entrants like Maven Clinic challenging established players such as Progyny. All eyes will now be on how both companies adapt to this new landscape. For Maven, this represents an opportunity to showcase their capabilities on a larger scale, while Progyny will need to focus on client retention and acquisition to offset this loss.
