Forward, the ambitious healthcare startup that raised over $650 million to revolutionize primary care with AI-powered doctor-in-a-box kiosks, has abruptly shut down just one year after securing a $100 million Series E funding round. The company, founded in 2017 by former Google and Uber executives including CEO Adrian Aoun, sent a late-night email to patients on Tuesday announcing the immediate closure of all locations and cancellation of scheduled visits.
The startup’s downfall centered on its futuristic “CarePods” — metallic kiosks equipped with AI technology, ultraviolet lighting, and floor-to-ceiling screens designed to provide autonomous healthcare without human doctors. Aoun had boldly compared the CarePods to Tesla’s self-driving cars, calling them “the autonomous doctor’s office.” The pods directed patients to take their own blood, sequence their DNA, and test for diseases like COVID-19 entirely independently.
However, the reality fell dramatically short of the vision. Eleven former employees revealed to Business Insider that the CarePods faced numerous technical failures: automated blood draws routinely failed (over half the time according to one estimate), lab test offerings were withdrawn, and patients frequently became trapped inside the pods. Forward had promised to launch 3,200 CarePods within a year of the November 2023 announcement, but only managed to deploy five locations, with just two operational immediately before closure.
The first CarePod in Roseville, California’s Galleria mall is now gone, replaced only by two strips of blue painter’s tape on the marble floor. Each CarePod cost over $1 million to produce, according to former employees, creating significant financial strain. The startup also struggled to convince landlords to host the kiosks, and a major planned launch at Chicago’s Willis Tower never materialized due to logistical challenges.
Forward’s original clinic model also suffered as resources shifted to CarePods. The company operated over a dozen sleek, tech-enabled clinics across the US offering $150/month memberships (no insurance accepted), featuring Star Trek-like body scanners and iPad-equipped walls. But these clinics sat largely empty in recent months, with at least two locations closed. The company cut costs by eliminating coverage for various lab tests, genetic testing through 23andMe, and minor procedures.
The March 2024 layoffs signaled serious trouble, with the company reportedly having less than a year of runway remaining. The closure represents a cautionary tale of AI-fueled ambition meeting healthcare’s complex realities — a case of style over substance that left patients, employees, and investors with little to show for the massive investment.
Key Quotes
If Elon has the self-driving car, well, this is the autonomous doctor’s office
Forward CEO Adrian Aoun made this bold comparison to Axios in late 2023 when launching the CarePods, positioning his AI-powered kiosks as the healthcare equivalent of autonomous vehicles. The comparison now serves as a cautionary tale about overpromising on AI capabilities.
I don’t even believe a doctor’s office should exist
Aoun told The Information when launching the first CarePod in November 2023, revealing his vision to completely replace traditional medical care with AI-powered automation. This statement frustrated many of Forward’s own medical staff who felt it was disrespectful to healthcare professionals.
I would get people saying it looks like something from ‘Black Mirror’
A former Forward employee described patient reactions to the CarePods, referencing the dystopian Netflix series. This quote captures the public’s unease with fully automated AI healthcare, contributing to the lower-than-expected patient adoption that ultimately doomed the venture.
The aesthetics drew people in and kept them there. But the scanners don’t actually do much.
A former employee’s assessment of Forward’s Star Trek-like body scanners that were centerpieces of its clinics. This observation encapsulates the core problem: Forward prioritized impressive AI-powered visuals over functional healthcare technology, with scanners often recording incorrect data that clinicians had to manually re-measure.
Our Take
Forward’s spectacular failure reveals a fundamental misunderstanding about AI’s role in healthcare. The startup confused technological sophistication with medical efficacy, building million-dollar pods that trapped patients and failed at basic tasks like blood draws. This wasn’t innovation — it was expensive theater.
The broader lesson extends beyond healthcare: AI systems designed to completely replace human expertise, rather than augment it, face enormous hurdles. Forward’s dismissive attitude toward doctors and traditional care alienated both medical professionals and patients who understandably felt uncomfortable with fully autonomous diagnosis.
Most telling is the gap between promise and reality — from 3,200 planned CarePods to just five deployed, from revolutionary healthcare to empty clinics. This pattern of AI overpromising is becoming increasingly common and damaging to the industry’s credibility. Forward’s $650 million lesson should remind founders that sustainable AI applications enhance human capabilities rather than attempt to eliminate them entirely, especially in fields requiring trust, empathy, and complex judgment.
Why This Matters
Forward’s collapse represents a critical inflection point for AI in healthcare, demonstrating that technological ambition alone cannot overcome the complexities of medical care delivery. The startup’s failure highlights the dangers of prioritizing flashy AI-powered automation over proven healthcare fundamentals, raising important questions about the pace and approach to healthcare disruption.
This shutdown sends ripples through the broader AI healthcare investment landscape, particularly as venture capital has already been pulling back from late-stage healthcare deals. With over $650 million invested, Forward’s demise will likely make investors more cautious about funding AI-first healthcare models that promise to replace human medical professionals entirely.
The case illustrates a broader trend of AI overreach — where companies promise revolutionary autonomous systems but deliver unreliable technology that frustrates users. The frequent technical failures, from malfunctioning blood draws to patients getting trapped inside pods, underscore that AI healthcare solutions require far more rigorous testing and development before deployment. For the AI industry, Forward’s story serves as a reminder that human-centered design and practical functionality must accompany technological innovation, especially in high-stakes fields like healthcare.
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Source: https://www.businessinsider.com/healthcare-startup-forward-shutdown-carepod-adrian-aoun-2024-11