Amazon Inc (NASDAQ: AMZN) is making moves to capture a sizeable market share in India’s online pharmacy business, the Economic Times reports.
The Jeff Bezos-led company could make a $100 million investment in Apollo Pharmacy, a standalone unit of the Apollo Hospitals Enterprise Limited.
What Happened: With an entry in the medicine delivery business, Amazon will compete for market share with the Reliance Group and Tata Group, two well-established companies in the Indian subcontinent, Reuters reports.
Earlier in August, Amazon Pharmacy launched services in Bengaluru, India. Amazon’s expansion plans were unclear at the time.
In November, Amazon Pharmacy kicked off across 45 states in the U.S., offering insurance information and online prescription management options in addition to the medicine delivery. Amazon’s foray into the pharmacy space was widely anticipated after its PillPack acquisition in 2018.
Why Does It Matter: According to Reuters, the e-pharmacy space in the Indian subcontinent could grow up to ₹250 billion (roughly $3.5 billion) by 2022.
In mid-august, Mukesh Ambani-led Reliance bought a 60% majority stake in the Indian online drug delivery startup Netmeds for an $83 million (₹6.2 billion), Reuters reported. The Reliance deal took place soon after the news of Amazon Pharmacy's Bengaluru launch, as entities led by two of the world’s richest fight for market share.
In early November, the Economic Times claimed that Tata Group is holdings talks with another Indian e-pharmacy, 1MG, for a majority stake.
Price Action: AMZN shares closed 0.61% higher at $3,177.29 on Tuesday.
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