ICYMI: Amazon's disruption of the $312 billion pharmacy and drug stores market poses a serious threat to smaller entrants and traditional players alike
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Insider IntelligenceAmazon Pharmacy accepts most forms of insurance, and uninsured Prime members can receive an up to 80% discount on meds. Prime members also receive unlimited free two-day delivery, while non-Prime customers receive free five-day delivery or the option to dish out $5.99 for two-day delivery.
Amazon's disruption of the $312 billion pharmacy and drug stores market poses a serious threat to smaller entrants and traditional players alike. Traditional pharmacies like CVS and Walgreens can't compete with the tech giant's infrastructure of its online marketplace, tech resources, and reserve of users in place to pilot, iterate, and launch innovative services.
For example, Amazon leveraged its PillPack service to offer free prescriptions and over-the-counter delivery to both Prime and non-Prime consumers, and now Amazon Pharmacy settled on a model that offers free delivery options to both Prime and non-Prime consumers. The tech behemoth also casts a daunting shadow over newer entrants as it flaunts its member base of
118 million Prime subscribers—which would make it difficult for small pharmacy startups like NimbleRx to attract customers.This launch marks yet another healthcare space Amazon plans to disrupt—far from unexpected after the myriad health-focused moves it's made in recent years:
Amazon has been making forays into pharma since its acquisition of PillPack. Read more: Business Insider »
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Yes, it does. This huge market is ripe for disruption. Hard to understand why few people appeared to see amazon coming. Their move was well telegraphed. Disruption or Monopoly?