PillPack, the online pharmacy known for its service of delivering pre-sorted daily medication packets, captured significant attention from both the public and major retailers during its early years. Founded in 2013, the company offered a user-friendly solution to the complex problem of managing multiple prescriptions, earning it a devoted customer base. Its story, however, is inseparable from the tech giant that eventually acquired it.
The Amazon Acquisition
In June 2018, Amazon acquired PillPack for a reported $1 billion. This strategic decision impacted the healthcare industry, including rival pharmacies. The acquisition benefited both companies: PillPack gained Amazon's financial support and logistics, while Amazon acquired a licensed pharmacy platform, technology, and customer base. This move helped Amazon overcome hurdles in entering the regulated pharmaceutical market.
Why Amazon bought PillPack
Amazon’s reasons for the acquisition were strategic:
- Pharmacy Licenses: PillPack held pharmacy licenses across the U.S., providing Amazon market access.
- Technology: PillPack’s PharmacyOS technology was valuable for managing prescriptions and improving customer experience.
- Customer Base: PillPack's customers, often managing multiple chronic conditions, represented a valuable demographic.
- Market Entry: The acquisition allowed Amazon to enter and disrupt the traditional pharmacy industry.
The Integration into Amazon Pharmacy
Following the acquisition, PillPack was integrated into Amazon's healthcare strategy. In late 2019, it was rebranded as “PillPack by Amazon Pharmacy”. The full Amazon Pharmacy service launched in November 2020, offering various online pharmacy services, including prescription filling and savings programs like RxPass for Prime members.
PillPack continues as a specialized service within Amazon Pharmacy for customers needing pre-sorted daily medication packets. This allows customers with complex medication regimens to receive the pre-packaging service, while others can use the standard Amazon Pharmacy service for bottle-based prescriptions. Essentially, PillPack transitioned from a standalone company to a core offering of Amazon Pharmacy.
PillPack vs. Amazon Pharmacy
| Feature | PillPack (Original) | Amazon Pharmacy (Post-Acquisition) |
|---|---|---|
| Primary Service | Pre-sorted daily packets for multiple medications. | Comprehensive online pharmacy for most prescriptions. |
| Medication Type | Designed for daily, multiple-pill regimens. | All types of standard prescription medications. |
| Ordering Process | Managed through the PillPack website. | All pharmacy services, including the PillPack feature, managed through the Amazon Pharmacy portal or app. |
| Insurance & Pricing | Accepted most insurance plans and offered price checks. | Accepts most insurance, but also offers transparent non-insured pricing and Prime member savings. |
| Service Evolution | Standalone service disrupting the market. | A specialized feature within a much larger healthcare ecosystem. |
Expansion and the Future
The PillPack acquisition was a starting point for Amazon’s broader health strategy. Amazon Pharmacy has since expanded its services, including same-day delivery in some areas and pharmacy kiosks at One Medical locations, another Amazon acquisition. These expansions aim to integrate pharmacy services into the consumer experience. Amazon continues to invest in technology to improve the prescription process. The original PillPack concept of a customer-focused pharmacy is now driving innovation within Amazon's larger platform.
Conclusion
In summary, what happened to PillPack is that it became a vital part of Amazon’s healthcare strategy. While it is no longer an independent startup, its innovative service is now available to more people through Amazon Pharmacy. The acquisition utilized PillPack's technology and brand to help Amazon enter the pharmacy business. For users who prefer pre-sorted packets, the service remains a key feature, showing how an acquisition can enhance a unique offering within a large company. The deal also influenced the industry towards online and convenient medication delivery.
To learn more about the PillPack service within Amazon Pharmacy, you can visit: Getting started with PillPack from Amazon Pharmacy.
