- Amazon is looking to invest nearly $100 million in Apollo Pharmacy, the Indian pharmacy chain, two people familiar with the plans told the Economic Times Wednesday.
- Amazon’s plans to expand in India come after the launch of its own Amazon Pharmacy service in the US November 17, allowing people to buy prescription drugs through its website.
- The potential investment would come amid competition in India from Mukesh Ambani’s Reliance, which recently bought a majority stake in online pharmacy Netmeds.
- Indian trader groups say online drugstores can contribute to medicine sales without proper verification.
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Amazon is reportedly considering a nearly $100 million investment in India’s pharmacy chain Apollo Pharmacy, close on the heels of its launch of an online pharmacy to deliver prescription drugs in the US.
The company is looking to face up to Reliance Industries Ltd and Tata Group in India’s fast-growing drug market, the Economic Times reported Wednesday, citing two people aware of the plans.
Amazon already delivers medicines in India and the potential investment would come amid rising competition from Mukesh Ambani’s Reliance, which bought a majority stake in online pharmacy Netmeds.
Both Amazon and Apollo Hospitals, which owns Apollo Pharmacy, declined to comment to Reuters.
The growth of e-pharmacies has left many Indian trader groups feeling threatened. They say online drugstores can contribute to medicine sales without proper verification and the entry of large players can cause unemployment in the sector.
Amazon’s plan to further expand in India comes after it launched its US Amazon Pharmacy service November 17, increasing its competition with drug retailers such as Walgreens, CVS Health and Walmart.
US customers can now buy drugs through Amazon’s main website.
Amazon Prime members would get benefits from the service including two-day delivery and big price cuts on generic and brand-name drugs, the company said.
Since 2018, when the company bought a small drug-delivery startup called PillPack, industry watchers have been expecting Amazon to move into delivering drugs.
In June 2019, Amazon launched a brand of over-the-counter medication, and in August 2020, the company launched a health-monitoring wristband called Halo.
Business Insider reported in November that as the retail firm expands into healthcare, it would need to be careful not to scare consumers who may be concerned about their data privacy.