Fitbit is embarking on a multi-year business transformation to pivot to software, healthcare services and data and analysts, but has to keep its wearable and smartwatch business humming long enough to fund it. The ongoing debate around Fitbit will revolve around whether the company has the time to execute its business model shift.
The company also said Humana has selected Fitbit Care as its coaching platform. The effort is a big move into recurring revenue and using Fitbit's data to become more of a software provider. For now though, Fitbit's primary business rests on device sales and the popularity of smartwatches like the Versa. Fitbit Care takes Fitbit's data and the tools from the Twine Health acquisition. Fitbit is still a large wearable and fitness player, but Apple and its Apple Watch is increasingly focused on healthcare outcomes.
Fitbit announced Thursday that it has a new partnership with Dexcom, makers of glucose monitoring products. The first planned initiative is basically a data sharing pact between Fitbit's new Ionic watch and Dexcom's G5 Mobile continuous glucose monitoring system. Using the Fitbit SDK, data from Dexcom's glucose monitoring will become accessible on the Ionic smartwatch without the need for a smartphone or an app. "The strength of our brand and our ability to track critical health metrics continuously for up to 4 days, coupled with Dexcom's market leadership in CGM, present a powerful combination that we hope will help millions of people better manage their diabetes," said Fitbit CEO James Park. "With Ionic, we are focused on driving positive health outcomes and more health focused tools."