Amazon redoubles its commitment to the health business. The e-commerce company announced an agreement that will acquire PillPack, a startup on the Internet that is dedicated to the delivery of medicines at home. The reaction was immediate between the chains of traditional pharmacies, like Walgreens, CVS Health, and Rite Aid, that suffered sharp falls in the opening of Wall Street.
The PillPack service is very simple. Organize and deliver medications to patients in specific doses that must be taken at all times. It is also offered as an online pharmacy that is open 24 hours a day. Jeff Wilke, head of Amazon's global consumer business, says the combination will "simplify people's lives and make them feel healthier."
Amazon was offered when it emerged as an e-commerce portal as the option to buy cheaper. But as he expanded his logistics infrastructure, he put more focus on convenience and saving time for users who come to his market. Jeff Bezos, in addition, is a master at the time of giving scale to the businesses in which he penetrates on the companies that he acquires.
Bezos has been trying to obtain licenses in the United States to distribute drugs, so the acquisition of PillPack is not entirely a surprise. What was expected is that he had made a larger operation, such as the one he carried out with the purchase of WholeFoods. The acquisition of the supermarket chain has already created nerves among pharmacies.
That fears are now becoming more evident. Walgreens and Rite Aid left more than 10% after the Amazon maneuver, while CVS lost 8%. Drug distributors such as McKesson and Cardinal Health dropped 3%. The terms of the agreement, in any case, are unknown and it is not explained what it will do when the operation is completed during the second half of this year.
The chains of traditional pharmacies in the US are already trying to anticipate the movements of Amazon and other electronic rivals by offering home delivery services. CVS Health announced this month an agreement with the US Postal Service so that its employees can pick up the medicines in their stores and take them within one to two days to the door of their customers.
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