Amazon launches online pharmacy
Amazon on Tuesday launched an online pharmacy for delivering prescription medications in the United States, increasing competition with drug retailers such as Walgreens, CVS and Walmart.
Called Amazon Pharmacy, the move builds on the web retailer’s 2018 acquisition of PillPack and will allow shoppers to toggle at checkout between their co-pay and a non-insurance option, heavily discounted for members of its loyalty club Prime.
Over the past two years, Amazon has worked to secure more state licenses for shipping prescriptions across the country, which had been an obstacle to its expansion into the drug supply chain, according to analyst notes from Jefferies Equity Research.
The company founded as an online bookseller has disrupted multiple industries drawing criticism of its size and power from labor groups and lawmakers along the way.
E-commerce has surged this year as governments told people to stay home amid the health crisis. Amazon is betting that Prime members – more than 150 million globally – may be receptive to buying medication online now that it’s from Amazon.
