A Startup Backed By Livongo Veterans Just Got A Nearly $500 Million Valuation, And It\'s Coming For Healthcare\'s Middlemen

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Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. >Subscribe here to get this newsletter in your inbox every Sunday.

What we’re going over today:


Google Health and David Feinberg

What’s trending this morning:


>Google’s health division is splintering

Google’s healthcare group is moving more than 100 employees into other departments, including Fitbit and Search. The shakeup is yet another growing pain for the tech company, which is still finding its voice in healthcare:

In March, Google Health had around 700 people working on research, imaging, clinical tools, health sensors, and more. That number has dropped to almost 570 as of this week – a near-20% cut to its headcount – according to internal data obtained by Insider.

The changes should improve the group’s impact and execution speed, Dr. David Feinberg, the head of Google Health, said in an email on May 5 seen by Insider. They should also support Google’s broader work at a time when the company is expanding its focus on health and wellness, he said.

“We brought together some teams to combine expertise, and focus our efforts on health and wellness,” a spokesperson for Google Health said in a statement to Insider.

Here’s what else you should know about the reorganization:

Also read:


>Employees are departing Credit Suisse in droves

Credit suisse blunders 4x3

Credit Suisse has been rocked this year by the implosions of Greensill and Archegos, and nearly 50 of its execs, bankers, and traders have defected to firms like Jefferies, JPMorgan, Citigroup, and Bank of America:

The Swiss bank has been embroiled in a string of problems over the last two years, starting with a 2019 spying scandal involving its then-chief operating officer keeping tabs on rival UBS, which was followed by the resignation of its CEO four months later.

The bank in February froze $10 billion of supply-chain finance funds linked to Greensill Capital over valuation concerns. And lately, Credit Suisse has been dealing with the fallout from the implosion of Archegos Capital Management, a family-office client founded by hedge-fund billionaire Bill Hwang that had $8 billion in assets decimated.

Together, the setbacks have cost the firm billions of dollars in losses and have also been accompanied by an exodus of senior bankers and other workers.

Get the full scoop on the bank’s talent losses:

Also read:


>Instacart takes on Google and Facebook

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Seth Dallaire Amazon

Instacart is building an advertising business that pulled in hundreds of millions of dollars last year – and it’s growing so fast that revenue from the operation could top $1 billion in 2022:

The company is known for grocery delivery, a gig-economy business that often suffers from thin or nonexistent profit margins. But what sets it apart from DoorDash and other delivery platforms is how well Instacart’s offering suits high-value advertising.

The ads are often paid listings for items like Häagen-Dazs ice cream and Ketel One Vodka that shoppers see while searching for groceries to buy and browsing through Instacart’s app. The business has caught on with brands trying to get in front of customers they’d otherwise reach through in-store promotions or grocery-store circulars.

Ads will be key to Instacart’s long-term profitability and international expansion – and the business differentiates the company from other gig-economy services such as Uber and DoorDash.

Read up on how its ad business could rival major industry players:

Also read:


>Lordstown Motors CEO Steve Burns has resigned

Lordstown Motors Endurance pickup truck next to a photo of CEO Steve Burns with the Lordstown logo patterned out on a black background

On Monday morning, electric-vehicle startup Lordstown Motors announced the resignation of Steve Burns, its founder and CEO, along with other top executives:

It’s a steep fall for Burns, a serial entrepreneur who founded Lordstown in 2019 and last year took it public – but perhaps not an unexpected one.

Insider spoke with 17 former employees from Burns’ various startups, including eight current and former Lordstown workers.

Some called Burns, 62, a visionary with a knack for seeing trends before they emerge. Most said he knew how to generate buzz and pull in investors, but at times struggled to deliver on his promises. Others derided him as a “con man” who bent the rules to improve the public image of his companies, hired family members and friends, and lacked the skills to break into the demanding auto industry.

Take a look at Burns’ rise and fall:

Also read:


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– Matt

Source : https://www.businessinsider.com.au/top-business-stories-google-health-shakeup-2021-6

Google is moving nearly 20% of its Health division to other areas of the company. It's yet another growing pain for the unit.
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Google is moving nearly 20% of its Health division to other areas of the company. It's yet another growing pain for the unit.