Here's why diagnostics stocks Metropolis, Dr. Lal are declining on Monday

Shares of diagnostic companies such as Dr. Lal PathLabs Ltd. and Metropolis Healthcare Ltd. declined over 2% after Amazon launched its first at-home lab testing service in India.

The new service, called Amazon Diagnostics, is now available in six cities: Bengaluru, Delhi, Gurgaon, Noida, Mumbai, and Hyderabad. It covers over 450 pincodes and offers around 1,000 medical tests.

Amazon's scale and logistical capabilities could pose a serious challenge to established players such as Dr. Lal PathLabs, Metropolis Healthcare, and Vijaya Diagnostics.

Amazon Diagnostics has been launched in collaboration with Orange Health Labs, a diagnostics provider known for its convenience-first, full-stack model.

This move marks Amazon's global entry into the diagnostics space. The service allows users to book tests, schedule home sample collections, and access digital reports—all through the Amazon app.

The diagnostics offering is part of a broader initiative to integrate Amazon’s healthcare verticals—Pharmacy, Clinic, and Diagnostics—under a unified brand: Amazon Medical.

"This expansion strengthens the foundation of Amazon Medical by building on the existing services of Pharmacy and Clinic. With Amazon Pharmacy, customers have access to a wide range of prescription medications and healthcare essentials, along with free teleconsultations and delivery benefits for both Prime and non-Prime members. Amazon Clinic enables users to consult licensed doctors for a variety of primary care needs through a seamless digital experience," Amazon said.