FILE PHOTO: Visitors walk past an advertising billboard for the Track Sandy’s watches at the IFA consumer Electronics Show in Berlin, Germany, on September 1, 2017. REUTERS/Fabrizio Bensch
(Reuters) – Fitbit Inc. was awarded a contract by the singapore government to offer fitness tracking devices and services for up to one million of the citizens of the country, as part of a health initiative that will begin in October this year.
The deal, which means that the company’s etfs free of charge, but on the condition that the user will have to spend 10 Singapore dollars a month for a year, sending the shares of the company are up 8% in premarket trading.
The deal is a benefit for the San Francisco-based communications pioneer which has seen its shares sink in the course of the two years in the face of competition from Apple, Samsung Electronics, and a raft of cheaper rivals.
“This is not Fitbit’s first major integration of a digital platform for health it and wearables, which is a national program of public health worldwide,” the company said.
Singapore is a city-state of 5.6 million people, and has the longest life expectancy in the world, and have a wide access to the health care system. However, the government has raised concerns about the relatively high rates of heart disease and diabetes is among the rapid aging of the population.
Subscribers will receive a personalized health advice and a nudge in the right direction, as well as the promotion of physical activity, healthy eating, and improving the quality of sleep among its users, said Zee Yoong Kang, CEO of Singapore’s Health Promotion Board (HPB).
“There were a lot of users, and a number of major international players,” HPB said in a statement.
Fitbit said it also contains a consent process, to indicate whether or not the users agree to share their data with the HPB. It is an insight into the data that will be used for health promotion programs, by HPB, in the country, according to the company.
Reporting by Neha Malara, Munsif Vengattil in Bengaluru, and John Geddie; Editing by Saumyadeb Chakrabarty and Patrick Graham