The global pet food market has become fiercely competitive, with an estimated market share of $103.3 billion in 2023 and still growing. This growth has led many companies to target pet owners who are willing to invest in quality food to enhance their pets' well-being and longevity.
In a move to distinguish itself in the crowded market, Ollie, the "human grade" pet food subscription service, is venturing into a new territory: AI-powered pet diagnostics. The company announced on Thursday its acquisition of DIG Labs for an undisclosed sum, a pet health tech startup that touts its proprietary dog stool image scanning and analysis capabilities.
Founded in 2019 by Tara Zedayko and Jessica Chu, DIG Labs developed its flagship app, Health Check, to help owners with their pets' digestive problems. The app allows users to take a picture of stool and receive health insights about their pet, providing guidance on whether to consult a vet right away or simply monitor the situation. Health Check, vetted by a veterinary advisory board, utilizes a vast amount of data, including over 10,000 dog stool samples and more than 50 million other data points such as images of skin, coat, teeth, gums, body condition, and eyes.
With the acquisition of DIG Labs, Ollie introduced a new service called Health Screening, which lets pet owners submit photos through the app and receive expert feedback on their pet's health within 24 hours. The new tool currently offers four types of AI health screenings: Dental, Digestion, Skin & Coat, and Weight. These screenings can detect issues such as tartar buildup, abnormal stool color or texture, irritated skin, and weight-related concerns.
Ollie partnered with DIG Labs to power the Health Screening feature last year. Ollie said that the positive response from members led to interest in purchasing the startup to bring the technology in-house. The move brings Ollie into closer competition with other pet health services such as Daisy, TTcare, and Whistle, which offer similar scanning technology.
DIG Labs has officially shut down its Health Check app, and it's been fully integrated into Ollie's app.
Additionally, Ollie says it's using the tech to develop what it calls a "Foodback Loop" proprietary process that leverages over 20 million data points, which will help the company refine and enhance its recipes, improve its portion-feeding algorithms, and continue food research and development.
The company also plans to introduce new offerings like portion control, weight programs, customized experiences for puppies, and more.
"If you can think about, for example, how many dogs are overweight or obese in the United States alone, the opportunity to help provide personalized plans for these dogs in terms of, if they're overweight, their calories, to make sure that they can remain on the right track to get to that ideal weight, and then maintaining it over time, is something that we get really excited about," Zedayko told TechCrunch. The exec is retiring the DIG Labs brand and joining the Ollie team to serve as Chief Scientific Officer, where she will lead the Foodback Loop initiative. Her three-person team is also joining.
Ollie's first-ever acquisition is a strategic move that is likely to make its subscription more appealing to new members. Compared to traditional dog food that owners can buy at the grocery store, delivery services like these are on the pricier side. Ollie's subscription, for instance, ranges between $4 and $8 per day (so upwards of $224 per month). Now, users get more than just the convenience of pre-packaged dog food shipped to their house every eight weeks; they also get a convenient screening tool that allows them to monitor their pet's health easily and without the need for frequent vet visits.
