Amazon gets serious about delivering your medicine and break into multi billion dollar pharmacy industry

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Jeff Bezos is a CEO who likes to think not in quarters or even years, his frame of long term thinking usually spans multiple years or even decades. It was the dot com era when Jeff invested in a company called Drugstore.com which used to deliver drugs and medicine to users. Drugstore.com was a valley darling at that time and Jeff bezos sat as director on its board. However due to turn of dot com bust, the company got sold to Walgreens and finally was closed down. But by then Jeff had fixed his eyes on the potential of the healthcare. Lately company has been having annual meetings almost every year to discuss the feasibility of venturing into the pharmacy market. The business has lot of nuances and regulatory compliances which needs to be taken care of. It is not as simple as simply adding the item in your cart and checking out.  Also the industry currently has lot of strong competitors in the US market

But company evaluated that time to market is looking much better now where consumers are ready to pay for healthcare and trust and transparency is required in your medicine delivery purchase decision. Amazon has started hiring a leadership team who can build a go to market strategy for the category. A team is already in place and is talks with leading healthcare experts to understand the business and minute nuances. The mandate which has been given to the team involves building a small benefits program for the amazon employees and then scale it out to the world. This type of ethos where the company builds something to be used internally and then scales it out for the world to use has proven extremely successful, AWS being great example of that.

The market opportunity in front of Amazon is huge as it can be potentially $30 billion addition to the revenues for Amazon if they execute well as the overall market size is $300 billion dollars in USA alone. This can solve a big pain point for the customers who already trust amazon for buying other items and bring great amount of transparency to the industry.

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