Direct-to-consumer healthcare startup Ro financials and growth plans - Business Insider

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Startups that ship Viagra and hair loss pills to your door are becoming huge businesses. Here's a look at how industry leader Ro is plotting its future.

who worry about what might happen if conditions are treated as a series of one-off encounters, removed from the wider healthcare system.

Business Insider got an inside look at how the leading direct-to-consumer healthcare startup, Ro, is expanding its business and planning for its future, by moving from a seller of erectile-dysfunction treatments and hair loss medications to a full-service online medical clinic. The first part of the plan includes an expansion into allergy treatments, with plans to add care for more chronic and primary-care conditions in the future.

Ro is the parent company of Roman, Rory, and Zero. The company told Business Insider that it's seen its gross revenue grow 330% in 2019 compared to 2018. The company said it has facilitated 4 million healthcare visits in a little over two years. The company declined to share its sales figures in dollars.

Ro has the highest monthly sales of direct-to-consumer rivals Hims, Lemonaid, and Nurx, according to data compiled for Business Insider by Second Measure, which collects information from anonymized credit and debit card transactions from millions of Americans. The data show that Ro's monthly sales were 85% higher in January 2020 compared to January 2019.

Still, on a monthly customer basis, Hims had 1.3 times as many customers as Ro had in January 2020, the most of any of the direct-to-consumer startups analyzed. Hims' monthly customer count appears to be slowing, however, dropping 1% compared to January 2019, according to the data. Since launching in November 2017, men's health company Roman had been connecting men with doctors to treat their erectile dysfunction.

 

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