A look inside Amazon's PillPack acquisition almost a year later

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PillPack is thriving under Amazon's wing — but the retail giant is still unlikely to pose an imminent threat to pharmacy incumbents:

tout nearly 20,000 pharmacy locations across the US — and the two fill out a combined 3.5 billion prescriptions annually. Given that its established competitors have such a broad reach — and large physical footprints — acquiring PillPack won't give Amazon an immediate leading position in the pharmacy market.

And because PillPack is such a small player, Amazon isn't likely to upend the pharmacy industry just yet. PillPack controls a tiny sliver of the pharmacy market in comparison to big-name pharmacy retailers. But while it's not likely the deal will harm already-thriving pharmacies any time soon, PillPack opens up Amazon to a new revenue stream: The average PillPack consumer was worth $5,000 in 2018, per CNBC.

 

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