Amazon buys PillPack, an online pharmacy, for just under $1B • Hacker News Board

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#71

Post by petra » Thu, Jun 28, 2018, 4:07 PM UTC

jonknee wrote: post #63

tombrossman wrote: post #18

This is interesting because Amazon isn't exactly known for supply chain integrity. Who here hasn't received fakes from Amazon? If you rely on a specific medication for your health, is Amazon a brand you trust to deliver it? How long until they start commingling pills and shipping random counterfeit/fake product to users? Hope it never happens but if they do with pharmaceuticals what they did with everything else they…

They have lots of different businesses and associated supply chains, they're not going to have random 3rd parties selling prescriptions on Amazon like they do for many verticals. There would be no reason to integrate prescriptions in with their warehouses, so I don't think one is going to change the other.

Interesting.

Do they all ready have a supply chain close to the requirements needed in healthcare ? For what ?

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#72

Post by njarboe » Thu, Jun 28, 2018, 4:08 PM UTC

Nav_Panel wrote: post #8

charleyma wrote: post #2

Meanwhile, CVS + Walgreens lost $6B in market cap on the news Amazon is moving directly into pharmacy space. It's crazy how competitive Wall Street views Amazon moving into a market; have there been examples of Amazon making a large purchase/move but completely failing? (sure there are, just not coming me off the top of my head)

Seems like in any market where Amazon can reasonably compete with a brick & mortar, Amazon will win... Consider how expensive real estate is these days, especially in urban areas (and how much "millennials" like delivery). It's a solid formula.

And they have a large brick & mortar presence with Whole Foods.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#73

Post by petra » Thu, Jun 28, 2018, 4:09 PM UTC

Aloha wrote: post #58

protonimitate wrote: post #22

Earlier quoted context omitted.

I understand the fear, but I don't think fake medicine is as big of an issue as fake market place items. PillPack already has an established distribution network and prescription delivery licensing in 50 states. I don't know for certain, but I would assume that fake prescription medicine is a much bigger risk and would threaten the operation more than, say, fake batteries.

It's likely they'll integrate on the ecommerce side of things, not on the supply chain side anyhow - the economy of scale that amazon has for shipping will be beneficial.

People don't want to buy legal drugs from their UPS guy.

EDIT: i'm from outside the US, and after reading all the complains about delivery people throwing packages etc, i thought people don't trust delivery guys enough for medicine.

It appears i was wrong.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#74

Post by [deleted] » Thu, Jun 28, 2018, 4:09 PM UTC

[deleted]

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#75

Post by maimeowmeow » Thu, Jun 28, 2018, 4:12 PM UTC

djrogers wrote: post #70

el_benhameen wrote: post #26

Earlier quoted context omitted.

Man, yeah. I’ve stopped buying anything food-related from Amazon, and I’m very hesitant to use it for anything that will come into contact with me or my family. If they integrate PillPack’s supply chain with their own, I would be extremely unlikely to even consider the service.

Have you actually received fake food from amazon?

Food items can end up 2x+ times the price over a grocery store because there are hidden shipping costs. And many times the higher prices cause less people to purchase, so the item has a short experiation date.

And Im concerned about knockoffs as well.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#76

Post by blowski » Thu, Jun 28, 2018, 4:13 PM UTC

pseudalopex wrote: post #57

blowski wrote: post #12

Earlier quoted context omitted.

They invested $175M in LivingSocial, rebranded it "Amazon Local", then killed it off.

Amazon owned part of LivingSocial and also operated Amazon Local. LivingSocial eventually sold to Groupon.

Ah thanks for the correction

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#77

Post by deminature » Thu, Jun 28, 2018, 4:13 PM UTC

GurnB wrote: post #66

skybrian wrote: post #30

Earlier quoted context omitted.

Just as a data point, I don't believe I've gotten a fake from Amazon.

Try buying a PS4/PS3/Xbox controller. There is a good chance it is a good looking fake. Apple accessories are another hit or miss target.

Even if you're buying directly from Amazon, or does this only apply to marketplace sellers?

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#78

Post by Bartweiss » Thu, Jun 28, 2018, 4:13 PM UTC

prostoalex wrote: post #48

charleyma wrote: post #2

Meanwhile, CVS + Walgreens lost $6B in market cap on the news Amazon is moving directly into pharmacy space. It's crazy how competitive Wall Street views Amazon moving into a market; have there been examples of Amazon making a large purchase/move but completely failing? (sure there are, just not coming me off the top of my head)

The target market is dominated by seniors, who no longer have to drive to a local pharmacy and hang around the store while waiting for the subscription to be fulfilled. I am frankly surprised no dominant online player has emerged yet. Perhaps the shipping costs were a constraint?

Actual shipping costs aside, being a delivery channel is way harder for drugs than for most other things.

Amazon is reliable, sure, but what do they have - 99.9% fulfillment, 99% on time, 99% with authentic products, 97% of listed products in stock? Those are guesses, but apply those numbers to delivering vital daily medicines and the problem becomes pretty obvious.

Keeping in-stock rates high and "on time with authentic products" rates near 100% is not an easy task. It's not something pharmacies do perfectly either, but their shortages are generally at a store level rather than national, and they're not asking people to completely switch delivery mechanism to trust a space with online one provider.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#79

Post by pen2l » Thu, Jun 28, 2018, 4:16 PM UTC

tombrossman wrote: post #18

This is interesting because Amazon isn't exactly known for supply chain integrity. Who here hasn't received fakes from Amazon? If you rely on a specific medication for your health, is Amazon a brand you trust to deliver it? How long until they start commingling pills and shipping random counterfeit/fake product to users? Hope it never happens but if they do with pharmaceuticals what they did with everything else they…

> This is interesting because Amazon isn't exactly known for supply chain integrity.

The supply chain integrity problems were allowed by Amazon because it benefited their bottom line. If they wanted it perfect, they could have made it perfect.

Remember when the eclipse was happening and they actually did a pretty good job of removing all glasses which weren't safe? They know where integrity counts, and I think when it comes to pharmaceuticals they'll know how to play this game clean. As another user commented: Amazon didn't get this humongous by making silly mistakes like this.

Re: Amazon buys PillPack, an online pharmacy, for just under $1B

#80

Post by treis » Thu, Jun 28, 2018, 4:16 PM UTC

deminature wrote: post #77

GurnB wrote: post #66

Earlier quoted context omitted.

Try buying a PS4/PS3/Xbox controller. There is a good chance it is a good looking fake. Apple accessories are another hit or miss target.

Even if you're buying directly from Amazon, or does this only apply to marketplace sellers?

The problem is that inventory from different sellers is commingled unless the seller pays extra. So Amazon's controllers are in the same bin as the ones from Real Good Fakes Inc. Even if you buy from Amazon the actual product you get might have been supplied by Real Good Fakes.