Online appointment software has gained immense popularity after the onset of COVID-19, mostly because of high demand to see doctors, higher waiting time and lower physician availability. This has led to greater interest in launching an online appointment software such as a Zocdoc clone. It has intrigued entrepreneurs to know about Zocdoc business model.
What is Zocdoc business model? Which revenue model does Zocdoc follow? What are alternatives to Zocdoc? Owing to our expertise in online appointment software development like Zocdoc and Lybrate, we are often asked these questions by entrepreneurs who want to build apps like Zocdoc. To answer these queries, we present a detailed insight into Zocdoc business model and how does Zocdoc earn its revenue.
Zocdoc is a billion-dollar online platform that connects patients and healthcare professionals. It was founded with a vision to develop an online appointment scheduling software in 2007 by Oliver Kharraz, Nick Ganju, and Cyrus Massoumi in New York City. Since its launch, Zocdoc has grown to become a leader in the appointment booking market and has expanded its operations nationwide.
Zocdoc is an online marketplace which connects patients with certified doctors and healthcare professionals in their area. Patients have the option to filter their search according to a medical condition, city, zip code, and appointment date. Zocdoc also allows patients to check if the appointment or visit will be covered by their insurance provider and filter their search accordingly. Insurance carriers that are covered by Zocdoc include Ambetter, Humana, MetLife, etc.
See Also: Practo: Healthcare Done Right
Zocdoc business model can be categorized as online marketplace where the patients are the customers forming the demand side of online marketplace and the doctors or healthcare professionals form the supply side of the Zocdoc business model. For in depth understanding of Zocdoc business model, it is important to understand four major components of the business model.
Zocdoc business model creates value for customer (patients), healthcare professionals and other stake holders including insurance providers and large hospitals.
Majority of US healthcare market is governed by Fee-For-Service model. Under this method, insurance companies or government agencies reimburse the healthcare providers or physicians for the number of services they offer. However, Zocdoc revenue model is based on Value-Based-Care. VBC model adopted by Zocdoc focuses on encouraging professionals to engage with the patients and invest in technology to ensure higher comfort of the consumers. This emphasis on value based care has helped in improving value capture for Zocdoc.
Zocdoc is operational nationwide and it has adopted a clustered approach to grow tremendously in certain markets. However, there for some states, only a few doctors or physicians have listed with Zocdoc. The clustered approach adopted by Zocdoc is helping it to grow in every market at a steady rate. Zocdoc has also scaled up laterally during COVID-19 by focusing on telemedicine.
Sustaining the operations is highly important for growth of a platform. Zocdoc also follows few contingency measures to sustain in the market. Some of these measures are:
Zocdoc revenue model is patient-centric in its approach. So, patients are not required to pay any fees for making any bookings using the platform. The question remains, if bookings are free then how does Zocdoc earn revenue? The main source of revenue generation for Zocdoc is the subscription fees paid by providers or doctors for being listed on the platform. Earlier, Zocdoc charged listed providers a subscription fee of $300 per month. However, Zocdoc has changed its subscription model into a fee-based scheme. As per the new revenue model of Zocdoc, providers are required to pay $300 annual subscription fee and $35 per booking. This model is focused on remote area providers who do not get enough patients to cover monthly subscription fee of $300.
Technology and data science form the backbone of Zocdoc online appointment booking software. The digital team at Zocdoc works across multiple Practice Management Software (PMS) systems. This helps the team to partner with large health systems and small practitioners across US to serve its customers. Some cutting edge tools employed by Zocdoc to strengthen its online appointment booking software include:
As per a report, since its inception in July 2007, Zocdoc has raised $375.9M across 10 rounds of capital funding.
Here is a comprehensive outline of the growth timeline of Zocdoc since its inception in 2007.
The growth of Zocdoc has resulted in increased interest of entrepreneurs to launch a Zocdoc clone app.
Zocdoc is one of the most popular online appointment booking platform and it has achieved great brand awareness. Although Zocdoc was a pioneer in the field of online appointment software, it now has competition in the market. Some of the popular alternatives to Zocdoc are:
Online appointment software are experiencing immense user traffic and monthly bookings. Some apps such as Zocdoc that specialize in online appointment software are also offering telemedicine owing to market shift after COVID-19. Do you want to know more about Zocdoc business model or launch your own Zocdoc clone? Its easy to do so with Code Brew Labs. Let’s connect now!
Want to See How ZocDoc Works? Check out the Live Demo of our Telemedicine Solution – ZocDoc Clone:August 13, 2021