Following Google's $2.1B acquisition of Fitbit, wearables startups offering differentiated capabilities like sleep monitoring or blood sugar-tracking could become attractive acquisition targets.
With Fitbit, Google gains a lot more than a fitness tracking business. It also gets all of the biometric data that Fitbit collected from its tens of millions of active users over the years.
That data — and the data FitBit devices will collect going forward — could accelerate and intensify the tech giant’s foray into healthcare.
It also affects competitive dynamics within the consumer health monitoring market. First, it could accelerate M&A as existing players attempt to scale rapidly and defend against an intensified threat from Google.
Second, with market leaders like Apple and Samsung offering similarly equipped products, industry players will increasingly look to differentiate based on the type of device they offer, the biometrics they capture, and the depth of insights they can provide.