E-prescriptions are driving strong demand for pharmacy delivery services
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Driven by a change in customer needs during the Covid pandemic, e-prescriptions are now widely being adopted by the healthcare industry as a more efficient and convenient solution for patients and staff. Prescribers can process prescriptions with less enquiries, while dispensers can manage stock control more effectively, with the ultimate patient benefitting from a more streamlined and convenient end-to-end experience.
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With this change in dynamics, pharmacy delivery providers are seeing strong growth in their services, with patients now receiving delivery of their prescriptions direct to their homes. The global prescription delivery service market stood at $157.1m in 2022 and is anticipated to reach $396.5m by 2029, growing at a CAR of 16.7% in the forecast period 2023-2029.
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Global players of prescription delivery services include Walgreens, CVS Health, Express Scripts, Walmart Stores and Zur Rose Group. These large players, however, have experienced strong competition, with several new and innovative startups emerging, offering same-day delivery services nationwide. North America is the largest market of these services, with a share of 55, followed by Europe with over 23% market share
Large fundraising rounds for startups in the space
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With there being a clear requirement for the healthcare industry to digitise, the pharmacy delivery services industry has seen a lot of fundraising activity in the past few years. Alto Pharmacy recently raised $200m in a Series E funding round led by Softbank Vision Fund, as they looked to compete with retail giants. The company launched in 2016 and has expanded into 12 markets with now over $700m in annual revenues.
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Other landmark transactions include digital pharmacy startup Capsule, raising $300m in new capital at a valuation of over $1bn in 2021. Capsule has taken a more holistic approach, with the aim of being a one stop-shop for digital healthcare, where consumers can access Capsule's digital pharmacy along with a curated set of products and services.
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In an ever-increasing competitive field, large players are also very active. Amazon has ramped up healthcare competition with the rollout of their Amazon Pharmacy. Amazon's service offers prime members unlimited, free two-day delivery for medications and prescription savings benefits.
