Amazon forays into online pharmacy amid COVID-19, pilots with Bengaluru

Amid the COVID-19 pandemic when availability of medicines and healthcare products are of utmost importance, E-commerce giant Amazon has entered the pharmacy sector with its announcement of an online pharmacy in India. Initially, the service has been started in Bengaluru after which it may gradually be extended to other cities. 

The "Amazon Pharmacy" offers home delivery services of prescription-based drugs as well as over-the-counter medicines besides traditional Ayurveda medication, supplements, and basic health care devices.

"As a part of our commitment to fulfilling the needs of customers, we are launching Amazon Pharmacy in Bangalore, allowing customers to order prescription-based medication in addition to over-the-counter medicines, basic health devices, and Ayurveda medication from certified sellers. This is particularly relevant in present times as it will help customers meet their essential needs while staying safe at home," Amazon said in a statement.

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This is the second big leap the E-commerce giant has taken after it forayed into the food delivery business in India in May 2020 by launching Amazon Food. It piloted delivering food in Bengaluru and Mumbai. However, the food delivery services remain low key due to the apprehensions raised by the pandemic.

The Amazon pharmacy launch comes amid reports of Reliance Industries Ltd is in advanced stages of acquisition of Chennai-based Netmeds reportedly for a deal worth USD 80-100 million, while other leading players PharmEasy and Medlife also mull on the scope of merger and acquisition.

The company's entry into home delivery of medicines comes at a time when consumers would want to have the medicines delivered at home than stepping out themselves amid the risk of COVID-19. Amid the COVID-19 consequential lockdown, sale of medicines online has increased manifold with the companies offering home delivery services.

However, the scope of the online pharmacy business is subject to the policy regulations by the Central Government. In 2019, the Health Ministry had brought in a revised draft regulation directing the online pharmacies to partner with offline retail pharmacies rather than stocking up themselves. The online pharmacies had opposed the draft regulation as it has an impact on their profits and compels them to be dependent on local offline pharmacies.

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(with inputs from agencies)