Amazon’s relentless pursuit to become the 5th utility continues. After acquiring Whole Foods, Amazon has set its sides on healthcare. Amazon has announced its acquisition of PillPack, which is an online pharmacy that allows its users to purchase medications in pre-made doses.
Amazon has not yet disclosed the terms of the deal, however, according to the sources, It is just under a billion dollars. Walmart, had been in talks with PillPack to purchase the company but Amazon came from behind to snatch the deal.
The move to buy PillPack is a signal of how Amazon sees health and e-health as the next big retail battleground. According to Jeff Wilke, CEO of Amazon Worldwide Consumer Division, PillPack stood out due to its visionary team, deep pharmacy experience and technology prowess. PillPack is already operating in all 50 states in the US but as yet to expand internationally. TJ Parker, co-founder and the CEO of PillPack, looks likely to stay on after the deal. Parker looks eager to work with Amazon to take PillPack to the next level.
E-commerce share of the total retail market in the United States hovers around 10% now, and this share is likely to reach 17% by 2022. The current retail e-commerce share of Amazon in America is currently just above 40%; according to the experts, its market share could reach 50% by 2022.
What industry is next to be targeted, only time will tell.
