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Home » CVS Adds Next-Day Prescription Delivery As Threat of Amazon Competition Looms

CVS Adds Next-Day Prescription Delivery As Threat of Amazon Competition Looms

November 13, 2017
The Washington Post

Amazon's entrance into the pharmacy business has been widely predicted by Wall Street - although the company has given no indication of its plans. But Amazon is thought to pose the biggest near-term threat to retail pharmacies such as CVS, Walgreens Boots Alliance or Wal-Mart. (Amazon founder and chief executive Jeffrey P. Bezos is the owner of The Washington Post.)

Starting in December, customers can take advantage of free, same-day delivery in Manhattan — a service that would expand to the District, Miami, Boston, Philadelphia and San Francisco in 2018, CVS announced. It said next-day delivery would roll out nationwide next year.

Outside experts see the announcement as evidence that competition is working.

“The prospect of Amazon entering has motivated CVS to do something they probably should have done years ago,” said Adam Fein, president of Pembroke Consulting. “I think it also is a great signal that Amazon is not going to be able to walk into the pharmacy or pharmacy benefit management industry and immediately take it over. There are many large, sophisticated, well-entrenched competitors who are going to defend their turf.”

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