Doctolib, a pioneer in digital healthcare solutions, has secured its place as a household name in France by revolutionising appointment booking and management. Founded in 2013, this company has become indispensable for both healthcare providers and patients. However, its journey outside France hasn’t been as smooth.
Despite its domestic success, Doctolib has faced numerous obstacles in international markets, particularly in Germany. Different healthcare systems, local preferences, and technological challenges have all contributed to its struggles. This article delves into the highs and lows of Doctolib’s expansion efforts, revealing what it takes for a start-up to go global.
Founding and Domestic Success
Founded in 2013 by Stanislas Niox-Chateau and his three co-founders, the company helps healthcare providers with tasks like appointment booking and management. Rather than contacting practices directly, patients can check availability and book medical appointments online through Doctolib. This innovation simplifies complexity and frees up time in the data-sensitive, bureaucratic healthcare industry.
Doctolib is free for patients, but medical doctors pay a monthly subscription fee to use the core product, with various add-ons and upgrades available. The company also offers packages for hospitals and other practitioners like physiotherapists. It really took off during the pandemic, partnering with the French government to help with the Covid-19 vaccine rollout. By 2022, Doctolib was a household name in France and was valued at around £5bn.
Challenges in Germany
Doctolib expanded into Germany in 2016, but has faced many challenges. Adapting from the centralised French system to Germany’s federal setup was tough. Each of Germany’s 16 federal states was like entering a new market. This tested the flexibility of the platform.
Established companies have closed systems, making it hard for new competitors to enter. Dr Carol von Wildhagen says the existing practice management systems are like “fortresses”. They are hard to connect with third-party software, limiting the value new systems can offer to doctors.
Despite these challenges, Doctolib has made some progress. Of the 900,000 healthcare providers and 80 million patients using Doctolib, Germans make up 200,000 providers and 19 million patients. The firm has recently begun to gain traction.
Home Field Advantage
Liam Boogar-Azoulay, co-founder of Waypoint AI, notes that home field advantage plays a big role in the European start-up scene. Germans prefer buying from German companies. This is common in almost every country.
This preference may be due to data security concerns. Germans believe that local companies understand their need for high data security. Doctolib’s 2022 acquisition of French data encryption startup Tanker may aim to address these concerns, but it is still a tough market.
Mr. Kolev, managing director of Doctolib Germany, argues that data privacy isn’t the main issue. The slow change is due to outdated technology like fax machines, which 82% of German companies still use regularly. He believes the best security and privacy should be a baseline to move the industry forward.
The Struggle with Technology
A 2023 study by Bitkom, a German digital advocacy group, found that many German companies still rely on fax machines. This outdated technology is a barrier to adopting new systems like Doctolib.
German healthcare practices spend about 61 days a year on paperwork alone. Increasing digitisation has been on the state’s agenda for a long time, but progress has been slow. Doctolib depends on the shift from paperwork to digital services.
“[Outdated tech is] not a problem that can’t be overcome. It’s just a barrier to adoption,” says Mr Boogar-Azoulay. He believes Doctolib can afford to invest a lot in the German market to overcome these barriers and sees a huge market opportunity.
Market Potential in Germany
Germany’s 84-million-strong population is aging, and doctor shortages are growing. The healthcare system needs optimisation to alleviate pressure and restore efficiency. Germany spent €495bn on health in 2023, around 13% of its total GDP.
Germans visit the doctor about 9.6 times per year, more often than other Europeans. In 2022, German primary care physicians saw an average of 254 patients per week, compared to 114 in France and 110 in the UK.
Given these statistics, it’s clear why Doctolib is keen to invest in Germany. The potential for growth is immense, and the need for innovative solutions is urgent.
Lessons for Future Expansions
Lessons learned from Germany have influenced Doctolib’s approach in other markets. For example, when entering Italy in 2021, Doctolib acquired an Italian competitor, Dottori.it, to establish a foothold.
The UK is another market of interest. However, Mr. Kolev believes that focusing on Germany, France, and Italy covers 55% of the European healthcare market. This makes a strong presence in these countries very valuable.
As Doctolib continues to grow, it will need to navigate local market challenges and leverage its experiences to succeed abroad. The company’s journey offers valuable insights into the complexities of international expansion.
In summary, Doctolib’s journey beyond France highlights the challenges of international expansion in the healthcare industry. Adapting to different systems and overcoming local preferences are significant hurdles. However, the potential for growth remains immense, particularly in markets like Germany with its ageing population and pressing healthcare needs.
As Doctolib continues to navigate these obstacles, the lessons learned will be invaluable for future ventures. Their experience underscores the importance of flexibility, local market adaptation, and the need for innovative solutions in a digital age.
