Amazon Enters a Regulated Market

As reported from several new services, Amazon’s entry into the pharmacy business follows along the line of their well used playbook with one major exception. See Amazon Launches Online Pharmacy, Why The New Amazon Pharmacy Could Pose A Real Threat To Drugstores and Amazon Shakes Up Health Care The healthcare marketplace is highly regulated and Amazon needed a way to quickly gain entry into this market. It’s no surprise that they purchased PillPack two years ago to obtain the proper licensing to operate in all of the states. As a result of today’s actions, the traditional drugstore model will be under siege by Amazon. They’ve already advertised two day delivery for common prescriptions such as insulin, cholesterol lowering medications and other drugs. Walgreens CEO Stefano Pessina said he was “not particularly worried” about the move. It remains to be seen whether or not Amazon will succeed, but the advantage is with Amazon.

What other regulated industries might Amazon be interested in? Life insurance companies have been in fear of Amazon entering their marketplace. It is well known that the life insurance business model is very inefficient. What about health insurance? Real estate? Others?

Only time will tell.