Amazon launches online pharmacy to sell prescription drugs, shaking up pharma industry
The company has opened an online pharmacy, providing Amazon shoppers the chance to buy their medication and order refills on their phones and have it delivered to their doorsteps in a couple of days, just like any other items.
Amazon.com Inc has launched an online pharmacy in India that will serve the southern city of Bengaluru, the latest move by the e-commerce giant to widen its reach in a key growth market.
The service, "Amazon Pharmacy", is going to offer both over-the-counter and prescription-based drugs, basic health devices and traditional Indian herbal medicines.
India is yet to finalize regulations for online drug sales, or e-pharmacies, but the growth of several online sellers such as Medlife, Netmeds, Temasek-backed PharmEasy and Sequoia Capital-backed 1mg has threatened traditional drug stores. The companies have said they comply with all Indian laws even as many trader groups continue to protest against e-pharmacies, saying that would lead to sale of medicines without proper verification.
Amazon's customer base is very high. There are around 5 million families dependent on the (offline) trade as per the sales manager of the E-commerce giant stated. So this move will further gain the popularity amongst the customers.
The company has opened an online pharmacy, providing Amazon shoppers the chance to buy their medication and order refills on their phones and have it delivered to their doorsteps in a couple of days, just like any other items. The move propels Amazon into a new business, potentially shaking up the pharmacy industry as amazon has done to everything from book sellers to toy stores and grocers. Big chains like CVS and Walgreens rely on their pharmacies to bring them a steady flow of shoppers who stop by frequently to pick up their medications.
Amazon said that they will offer the commonly prescribed medications from 17th November, including creams, pills, as well as medications that customers need to stay cold, like insulin. Shoppers have to set up a profile on Amazon's website and have doctors send prescriptions to the Seattle-based e-commerce giant. The insurance is even accepted. But Prime members who don't have insurance can also buy generic or brand name drugs from Amazon for a discount.
Amazon has eyed the health care industry for some time. Two years ago, the E-commerce has spent $750 million to buy online pharmacy PillPack, which organizes medication in packets by what time and day they need to be taken. The move comes amid increasing competition in India with rivals Walmart-owned Flipkart, billionaire Mukesh Ambani's upstart online grocery service JioMart and a range of other smaller players.
Amazon said that PillPack will continue, focusing on shipping medication to people with chronic conditions. Amazon has acquired the online pharmacy PillPack. The PillPack is Privately-held pharmacy caters to the needs of patients who take multiple daily prescriptions and delivers medications in pre-sorted dose packaging and coordinates refills and renewals.
