CVS sells their strips at $0.20 once you buy 200+. I'm sure you can get lower.

And why shouldn't this compete ? Their costs will be lower than test strips, their profits could be very significant.

They probably monetize with the device itself and then a monthly subscription for their tracking portal. Sounds quite reasonable to me. As a patient, I'd love it.

Edit: As a startup, it's not your job to match existing offerings - it's to disrupt. Ask Space-X, they can't compete with Boeing either ;)