Amazon Launches Delivery Prescription Drug Service, Amazon Pharmacy

Daniel Litwin
Nov 26, 2020
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amazon CVS Daniel Litwin Podcast Delivery drugs medicine pharmacy PillPack prescription shipping Tyler Kern Podcast Walgreens

Amazon, once an online used bookstore, has grown to dominate the retail industry, the grocery industry, and now the pharmaceutical industry. Amazon’s latest business venture, Amazon Pharmacy, spells trouble for brick-and-mortar pharmacies like Walgreens, CVS, RiteAid and more. Launched in 45 states, the service offers special benefits for prime members, as well as discounts and special relationships with healthcare plans. According to CNBC, Amazon will not share user data in compliance with HIPAA rules. As a result, the user experience will be different from what customers experience in the Amazon store.

MarketScale Radio hosts, Daniel Litwin and Tyler Kern, unpack Amazon’s latest business venture. Litwin considers what this means for small, local pharmacies, already struggling to compete with chains. Kern ponders what industries are immune to Amazon’s ability to enter and dominate, considering the company’s access to user data and convenience infrastructure.

KEY POINTS:

  • Amazon launches delivery prescription service in US market, with free delivery for Prime members.
  • Shares of walk-in pharmacies dropped at the news; how will this impact existing local pharmacies?
  • Delivery prescription delights customers wanting to avoid COVID interactions.

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