Chewy Inc. (NYSE: CHWY), an online pet product retailer, recently introduced a new service, Connect With a Vet, featuring remote consultations with veterinarians. The company is considering how best to monetize this service, as it has proved very popular.
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Connect With a Vet, Chewy’s program to connect customers with veterinarians, is free and available only to Chewy Autoship members. Although the company lacked enough veterinarians, it still performed about 30,000 sessions in a few months. Chewy saw such high acceptance of its service that it increased operating hours and added video chat. The retailer is discussing future plans for monetizing this service. Already, the ability to receive online advice from a veterinarian is a compelling reason to connect Autoship. Chewy’s growth is crucially dependent on this service. Customer subscriptions include a regular delivery of feed and other products along with some discounts. Autoship subscription sales account for nearly 70% of all sales for Chewy today. Expanding Chewy’s subscriptions keeps its income stable and reduces seasonality across the company
According to industry estimates, the U.S. pet products market is worth $100 billion a year. The health industry accounts for about 30 percent of this market. The company is entering this exciting market with its Connect With a Vet service. The general tendency towards humanizing pets is the main growth driver for Chewy. Moreover, the perception that pets are family members leads to an increase in the sale of goods and services pertaining to them.
Chewy Inc. (CHWY) shares closed up 0.61% to $77.20 at yesterday’s trading. CHWY’s stock closed the previous session at $77.20. Shares of the company were in the range of $76.0778 to $78.52. Shares exchanged were 3.33 million, below the 3.73 million daily volume in the previous 50 days and less than the 3.58 million volume over the whole year. Its stock, which has advanced 56.72% over the past year, fell -2.12% over the past week. Stocks have lost a total of -14.77% over the last six months, and the stock has gained 0.21% over the last three months. Furthermore, the stock has returned -13.59% so far this year.
