Amazon on Friday announced it will put up an Internet-based drug store in India to cater to the needs of Bangalore, as the American retail behemoth expands its scope in a major growth location.
Dubbed the "Amazon Pharmacy", the new service will offer over-the-counter (OTC) and prescription drugs and traditional Indian herbal medicines, Amazon disclosed in a statement, without specifying a date for the actual launch. Amazon will also sell medical-related devices like nebulizers, glucose meters, and hand-held electric massagers.
Amazon's foray into the drugstore business should not be a surprise to its rivals. The company bought PillPack, an online pharmacy startup, to the tune of nearly $1 billion in 2018. Amazon has also consulted with and hired the service of numerous medical experts in the past few years.
The opening of Amazon Pharmacy will kick-off in Bangalore and the new service may be trialed in India's other key areas.
The move comes as the online pharmacy business has enjoyed decent revenues, especially during the global health crisis.
American tech titans have poured billions of money in India's economy in the past months. In January this year, Amazon applied for a license to trademark the "Amazon Pharmacy" in Canada, Australia, and Britain.
In a statement, an Amazon spokesperson said the company's latest move is very relevant in the current setup because it helps consumers meet their basic requirements as they stay home.
Sales of medicines on the Internet in India, for which its capital city currently lacks clear policies, provides a good opportunity for Amazon. To date, the e-commerce titan has invested over $6.5 billion into its Indian businesses where another retail giant, Walmart-owned Flipkart, also operates.
India's online health industry will grow to around $4.5 billion this year, data by RedSeer Consulting shows. RedSeer has raised its projection of the country's online health market to $25 billion in the fiscal year 2025, compared with its pre-pandemic expectation of $19 billion. Online sales of medicines will continue to account for a huge share of the Indian market, RedSeer said.
Amazon launched 10 new warehouse facilities in India last month and began offering car insurance. The Seattle-based retail conglomerate had also been given the authorization to deliver alcohol in one Indian state, Reuters disclosed in June.
Growing its online pharmacy venture in India is a very smart move. The country does not have many regulators that monitor online-based sales of medicines, which is advantageous to companies who have the capacity to meet its growing demand.
