Amazon Wants to Make Your Drugstore Obsolete
If any company can deliver mail-order prescription drugs reliably and cheaply it’s Amazon. The big pharmacy chains need new ways to bring people in.
Drugstores like CVS and Walgreens are on notice. With Amazon looming, they need to change and fast.
Photographer: Christopher Lee/Bloomberg
After years of rumors and small steps into the pharmacy business, Amazon.com Inc. finally announced a firm expansion of its prescription drug ambitions Tuesday, about two years after it signaled its intent with the purchase of mail-order drug startup PillPack. Customers will now be able to use the new Amazon Pharmacy to order medicines online, and Prime members who don’t use insurance will get discounts.
The move, while expected at some point, still hit pharmacy giants CVS Health Corp. and Walgreens Boots Alliance Inc. hard: Both stocks slumped in early trading Tuesday. Investors are right to be concerned.