E-commerce giant Amazon has launched its online pharmacy in Bangalore, India, paving its entry into the online medicine market of the country.
Dubbed Amazon Pharmacy, the online pharmacy will be launched in Bangalore and may be placed into trial in other cities in India. The online retailer's move comes as the coronavirus pandemic gave the internet medicine market a boost.
Online medicine service
The Amazon Pharmacy service offers prescription, over-the-counter and traditional Ayurveda medication, along with basic health devices.
An Amazon spokesperson said: “This is particularly relevant in present times as it will help customers meet their essential needs while staying safe at home."
The e-commerce giant started moving into drug retailing in 2017 and in 2018, it acquired US-based home delivery medications startup PillPack. However, it only introduced its Amazon Pharmacy branding to PillPack's service at the end of last year.
The company made its trademark filing for the name Amazon Pharmacy in the UK, Australia and Canada in January. This has been seen as a sign that the retail giant is ready to expand its prescription drugs business outside of the US significantly.
Booming tech investments in India
Recently, India has become a top destination for billions of dollars in investment among US technology firms.
In January, Amazon chief executive officer (CEO) Jeff Bezos announced that the company will invest $1 billion in small businesses in India. He called India a key growth market for the e-commerce giant.
Speaking at a company event in New Delhi, Bezos said the 21st Century is “going to be the Indian century”. The event is part of Bezos’ three-day visit to India, which is expected to be bombarded by protests.
During the event, Bezos said: “The dynamism, the energy… the growth. This country has something special – and it’s a democracy.” He mentioned that Amazon expects to export $10 billion worth of India-made goods by 2025 and that the online retailer has already committed to $5.5 billion of investment in the country.
At an annual shareholders meeting in February in Cupertino, California, Apple CEO Tim Cook said the company plans to open its first brick and mortar store in India in 2021, as well as online sales operations this year.
A major reason Apple has not opened a store in India yet is that the country’s regulations require foreign retailers to source at least 30% of their raw materials locally, from which the company has tried to seek exemption from.
As a result, devices such as the iPhone and the iPad have been sold through stores run by local partners.
Cook said Apple “needed to get approval from the government to go in there ourselves.” He pointed out: “I don’t want somebody else to run the brand for us.”
Finally, social media giant Facebook acquired a 9.99% stake in Indian billionaire Mukesh Ambani’s digital technology business Jio Platforms for $5.7 billion.
The $5.7 billion deal between Facebook and Jio Platforms will give the tech giant a key foothold in India, one of the world’s fastest growing internet markets. Jio Platforms is the tech arm of Ambani’s conglomerate Reliance Industries.
