How Amazon Is Picking Up Where Traditional Retail Pharmacies Are Leaving Off

Amazon is adding same-day prescription service to consumers in 20 more cities starting in 2025.

Could Amazon have the prescription for success in what has been a tough retail pharmacy environment? As part of its recently-announced enhancements and updates, the company shared that it is ramping up its pharmacy business to 20 more cities next year, offering consumers free and rapid delivery of prescription medicines along with 24/7 access to a pharmacist.

Amazon Pharmacy is more than doubling the number of cities where consumers can get same-day delivery of their medicines, adding capabilities in urban centers including Boston, Dallas, Minneapolis, Philadelphia and San Diego, among others. Instead of brick-and-mortar locations, these modular pharmacies are located within Amazon’s sophisticated same-day fulfillment centers and leverage the organization’s advanced logistics network and technologies. By the end of 2025, Amazon estimates that 45% of customers in the U.S. will be eligible for same-day delivery of their meds.

Amazon’s acceleration comes as companies like CVS, Rite Aid and Walgreens have announced hundreds and, in some cases, thousands of store closings and employee layoffs. The expanded network also helps fill in gaps in parts of the country where people may live miles away from their nearest physical pharmacy location.

“We are building a modern pharmacy – what we like to think of as a ‘pharmacy in your pocket’ that offers rapid delivery direct to your door, and 24/7 access to our clinical pharmacists whenever you need them,” said Hannah McClellan, VP of operations, product and technology at Amazon Pharmacy, during Amazon’s recent “Delivering the Future” event in Nashville.

Progressive Grocer was on hand for that event, where McClellan delved into more detail about the expanded Amazon Pharmacy business. “Let’s talk about the existing health care delivery experience in pharmacy. Spoiler alert, it's not good. Studies have consistently shown that up to 30% of prescription medications are never even filled, and that approximately 50% of medications for chronic diseases that need to be taken over and over aren't taken as prescribed,” she pointed out, adding, “The good news is that at Amazon Pharmacy, we are confident that we are moving in the right direction, and we found that rapid delivery to a customer's door is a surprisingly effective solution to the challenges I just mentioned."

Cutting-edge technologies will allow Amazon Pharmacy to widen access to needed drugs and narrow the pivotal window of time between diagnosis and intake. According to Amazon, the rapid access increases the likelihood that patients will engage immediately in their care and adhere to treatment routines, which have been shown to improve health outcomes.

Launched in 2020, Amazon Pharmacy also provides customers with automatic coupons and the option to see estimated insurance pricing and Prime savings offers. These include RxPass, a $5-a-month subscription program offering access to 60 common medications, and the Prime prescription savings benefit, which provides up to 80% off generic medications and 40% off brand-name medications.

Seattle-based Amazon is No. 2 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century