Investors in Trupanion (NASDAQ:TRUP) are smiling today as shares of the pet insurance company are soaring higher by a massive 36%. This price action in TRUP stock follows on the heel of news that Chewy (NYSE:CHWY) will be partnering with the company to offer pet insurance.
Here’s what you should know about TRUP stock moving forward
TRUP Stock: Parterning with Chewy
So, why exactly did Trupanion pick Chewy as a business partner?
This partnership makes sense, as both companies are involved in services relating to pets. Chewy operates as an e-commerce store focused on pet supplies such as food and toys. The e-commerce store boasts an impressive customer base of over 20 million people. Additionally, Chewy will also be able to take advantage of Trupanion’s patented software that allows payment to be sent directly to veterinarians. That will reduce out-of-pocket expenses. Shares of CHWY stock are up more than 3% following this news.
Margi Tooth, co-president of Trupanion, commented the following
“We have the opportunity to introduce the concept of high-quality medical insurance to Chewy customers. We look forward to increasing the percentage of insured pets that walk through the doors of veterinary hospitals to ensure they get the best veterinary care.”
The partnership between these two companies will see Chewy offer Trupanion’s pet healthcare services to its customers, such as preventative care wellness plans and insurance plans for accidents, illnesses and chronic conditions. Trupanion’s patented software and 24/7 customer support will also simplify the payment process and increase access to care for customers. Insurance plans from Trupanion will be available to Chewy customers starting the spring of 2022. Mita Malhotra, the head of Chewy Health, added the following:
“The launch of customised care plans specifically designed for our customers is an important enhancement to the Chewy Health ecosystem, advancing our mission to make pet healthcare more affordable and accessible for all pet parents.”
Clearly, this move adds to Chewy’s healthcare offerings. Earlier in September, the company also added a veterinarian marketplace called Practice Hub to its platform. Practice Hub allows clinics and veterinarians to post pre-approved prescriptions, veterinary diet food and other medications right through the Chewy website. Additionally, it helps clinics reduce inventory and maintenance costs while simplifying the buying process for customers.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.