That title probably caught ya. You were like…. “wait…. What?” and then you clicked on this blog. Welcome.
Well alright let’s get into it. Just this morning Amazon, the behemoth, the big brother that clears out businesses left and right, is getting into the pharmaceutical game. Most importantly, they are going to use their enormous logistics infrastructure to deliver your prescriptions at what I am sure will be a deeply discounted rate. Goddammit they’ve done it again. This is bad news for companies like Walgreens, CVS, and newly IPO’d GoodRx. All three stocks were down today on the story of Amazon trying to reach its hands into their industry.
This isn’t a shocker completely, considering Amazon has been making moves into the pharma industry for a few years now. They acquired Pillpack back in 2018, and then released a fitness tracker called Halo just last year. This is what Amazon does. Find a hole in a grossly profitable market, fill that hole, and then dominate the niche with the infrastructure, data, and capital that Amazon has readily available. This tactic is by no means new, Amazon, Walmart, Facebook, and even fucking 3M do this on a daily basis. Big companies can acquire small, successful companies and then play a little game of copy cat to keep the revenue flowing and consumers happy.
Amazon has already planted a stake in the grocery business with the acquisition of whole foods and now they are turning those stores into little Amazon hubs. Obviously, Amazon has failed in pursuits before, but the pharma game would give them an opportunity in a new profit stream, with their already perfected delivery system and a move to Teledoc visits, this will just continue to be a win for Amazon. The second wave of COVID has already hit, and it seems like the consumer-goods-delivery giant has once again positioned itself in just the right place at just the right time.
The competition will be stiff but as the consumer behaviors are being more and more fueled to turn to the internet with solutions, Amazon has a niche to exploit. The brick-and-mortar companies like Walgreens, Walmart, CVS, and Kroger will need to jump on this delivery system or get packing, because in 2020, change is rapid and often times fatal for the ones that try to stop it.
Amazon, is just doing Amazon. No doubt this will not be the last industry that they try to sink their fangs in. Amazon is killing off retailors much like Walmart was doing in the 90’s and early 2000’s. Amazon will no doubt find success but when it comes to big pharma, success will be hard to obtain. If anyone can do it though, it’s Amazon.
Anyway, that’s my take on it. Until next time. -GS
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