Here's why Amazon Pharmacy may be good for the health care industry
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- Опубликовано: 6 фев 2025
- Amazon announced this week a big move into the pharmacy business, sending shockwaves through the industry. Is the tech giant going to take the health-care world by storm or break it? CNBC's Jon Fortt breaks down both sides of the issue. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
Amazon is entering the pharmacy business with a new offering called Amazon Pharmacy, allowing customers in the United States to order prescription medications for home delivery, including free delivery for Amazon Prime members.
Amazon has been quietly building out its pharmacy offering for several years after ramping up internal discussions in 2017 and acquiring PillPack in 2018. The pharmacy space is notoriously complex and competitive in the U.S., and Amazon Pharmacy is built in part on PillPack’s infrastructure, including its pharmacy software, fulfillment centers and relationships with health plans.
Amazon Pharmacy, announced Tuesday, is the company’s biggest push yet into $300 billion market, and threatens the dominance of traditional pharmacies like CVS and Walgreens, as well as other large retailers that offer pharmacy services, including Walmart.
Pharmacy stocks tumbled following the launch of Amazon Pharmacy. CVS shares fell 8.6% on Tuesday. Walgreens Boots Alliance dropped 9.6%. Shares of Rite Aid slid 16.2%. GoodRx, which helps consumers find discounts on prescription drugs, fell 22.5%. Amazon shares closed slightly higher.
For Amazon, the announcement is well timed. Americans are increasingly relying on getting their medicines via mail to avoid possible exposure to the coronavirus. That shift could be permanent, as more people than ever before are learning about new ways of receiving medication.
“We wanted to make it easy for people to get their medication, understand the cost and get it delivered to the home,” said TJ Parker, Amazon’s vice president of pharmacy, who previously co-founded PillPack. “The hard work is to make it easy ... there were a number of complications behind the scenes.”
“We think this new benefit will add tremendous value to our members,” added Jamil Ghani, vice president of Amazon Prime. “It’s relevant as folks try to do more from the comfort and safety of their homes.”
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Remember when a Walmart would open a store and people would lament about how it would slowly destroy the town or city? Amazon does that but 100 times faster
Literally
Except it didn't.
@@sebastienholmes548 so people didnt vote for trump because of economic anxiety and it was racism all along?
@@vietimports what those that have to do with anything.
@@sebastienholmes548 because people in rust belt cities literally cried about jobs being decimated because they were shipped off to china so walmart could buy things 80% cheaper. that is literally whats happened for the last 40 years. are you pretending to be stupid?
This will be good for Amazon, bad for the consumer, and bad for the competition.
Bad for the consumer in terms of cheaper price? Interesting
Bich nga
Do not see them beating CVS, Walgreens or Rite Aid. They tried with companion (pets) CHWY to beat them an failed, they tried with food (wholefood), it failed as well. Do not see them being number ¹ here but is always good to diversify your offerings
@@Floyd005 Supposedly Amazon has been looking into offering Health Insurance, which maybe is why they are making this move first?
No, I love PILLPACK with its individually wrapped group of pills for each time I take that I can throw out the grandpa pill organizer.
CVS destroyed my small pharmacy...then closed down...then closed the CVS that my scripts were transfered to...that in itself was a nightmare...whats good for the goose is good for the gander....
Great for customers!
Yes until they monopolize the market.
I bought Amazon, Apple, Facebook, Microsoft, Wells Fargo,
McDonalds, Nvidia, Zoom, Netflix,
Then merged it into one company 🤦♀️
Amazon always leading with innovation
Are you a real person?
What kind of schizoid segment is this?
Obviously they care about the shareholders more than the customers, employees, or communities.
Nice shirts
Jeff bezos has enough money, you guys really want to see one corporation own everything in the world huh?
Thumbed up your comment, but the answer to your question is a big fat NO!
what local pharmacies, they're already all owned by big corps here lol
The local ones are mainly the compounding and specialty pharmacies.
Today buy,,slb,,ovv,,mac,,mro,,flws,,endp,,
Pharmaceutical segment shows the effect on occupying the market place. Several businessmen have had this marketing vision. (I include myself). //
(Segmento farmacéutico evidencia el efecto en ocupar el lugar de mercado.
Varios empresarios han tenido esa visión mercadológica. (Me incluyo).
PD: Abierto Twitter @SONISTARKY >> twitter.com/SoniStarky #trading #markets.)