We expect Amazon Pharmacy to take market share by providing consumers with price comparison capability, health information and related health services.
We have noticed an uptick in Amazon Pharmacy YouTube Ads this week. The Amazon Pharmacy business unit is led by PillPack (Amazon acquired PillPack in 2018 for approximately $1 billion), co-founder T.J. Parker. In a recent interview Parker detailed how Amazon Pharmacy is working to become more like its parent company from the perspective of delivering a high-value service online. CVS Health (CVS) remains the market share leader with approximately 70,000 retail pharmacy locations. Amazon Pharmacy will provide consumers price comparison tools, health information and related health services to take share from CVS, Walgreens (WBA), Walmart (WMT), and the other retail pharmacy players in our view. Price comparison across Amazon Pharmacy and more than 60,000 U.S. pharmacies is available now for Amazon Prime members. Further, we expect that Amazon will leverage its experience working with third parties (experience gained through Amazon Marketplace), to deliver health information and add-on services (virtual doctor visits for example), to consumers – creating a rich user experience.