Zocdoc, Inc.

What is Zocdoc?

Zocdoc is a private healthcare technology company headquartered in New York City. It operates an online marketplace where patients find doctors, verify insurance, and book appointments, with providers paying per new-patient booking.

Who owns Zocdoc?

Zocdoc is owned by its private company Zocdoc, Inc. Ownership is held by founders, employees, and venture investors including Founders Fund and Khosla Ventures. There is no corporate parent.

Is Zocdoc a public company?

No. Zocdoc is privately held and has never listed publicly. It reached a peak valuation of $1.8 billion in 2015 and has not announced IPO plans.

When was Zocdoc founded?

Zocdoc was founded in 2007 in New York City by Cyrus Massoumi, Oliver Kharraz, and Nick Ganju.

How does Zocdoc make money?

Zocdoc charges healthcare providers roughly $30 to $140 for each new patient booking it delivers, plus fees for sponsored placement. Patients use the service free.

Is Zocdoc profitable?

Yes. Following its transition from flat subscriptions to per-booking pricing, Zocdoc reached profitability and has not raised equity capital since February 2021, funding operations from revenue and debt refinancing.

Zocdoc was founded in 2007 in New York City by Cyrus Massoumi, Oliver Kharraz, and Nick Ganju. Massoumi conceived the product after a burst eardrum on a flight exposed how difficult it was to find an available doctor. The original service listed physicians' open appointments in New York, letting patients book online rather than calling offices during business hours.

Early funding came from prominent venture firms. A 2010 Series B of $15 million from Founders Fund and Khosla Ventures enabled expansion beyond New York. The business model charged doctors a flat subscription, roughly $3,000 per year, regardless of how many patients the platform delivered.

The flat fee powered fast early growth in dense markets but created structural misalignment. In areas with strong patient demand the fee was a bargain; in thinner markets doctors paid for little return. Churn accumulated as the company expanded. A 2015 funding round valued the company at $1.8 billion even as the model's flaws deepened.

In late 2015 the board removed Massoumi as CEO and installed Kharraz the following day. The transition was contentious: Massoumi sued alleging fraud, a dispute that ended only when courts dismissed the case in 2024.

Under Kharraz, Zocdoc converted to per-booking pricing, charging providers roughly $30 to $140 for each new patient delivered. The transition began rolling out in 2018 and was painful: resistance was strongest in New York, its largest market, where some physicians filed lawsuits. The company extended timelines and held direct outreach with providers to rebuild the model market by market.

The rebuilt business reached profitability. Zocdoc expanded nationally to cover all 50 states, added telehealth during the COVID-19 pandemic, and integrated insurance verification and reviews into the booking flow. Its February 2021 raise of $150 million was its last significant equity round; subsequent financing has been debt refinancing, a signal that operating cash flow sustains the business.

The company's most significant public controversy was the 2015 ouster of co-founder and CEO Cyrus Massoumi, which produced litigation alleging fraud. Courts dismissed the case in 2024. The episode is a documented governance event in the company's history rather than an ongoing matter.

The 2018 per-booking pricing transition produced provider pushback including litigation from some New York physicians who objected to the new fee structure. The company resolved the transition through extended rollout and provider engagement.

Zocdoc also operates amid industry-wide scrutiny of provider directory accuracy, a problem federal regulators have addressed through "ghost network" rules for insurers. As a directory-adjacent marketplace, its listing accuracy obligations fall under this broader regulatory attention, though no specific enforcement action against Zocdoc is on record.