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December 7, 2018

Step aside, Amazon: Walgreens partners with FedEx to offer next-day prescription delivery

Daily Briefing

    Walgreens and FedEx on Friday announced the companies are launching a next-day prescription delivery service nationwide.

    The announcement comes after Amazon this summer made inroads into the pharmacy business by purchasing PillPack, an online pharmacy that provides home delivery, and CVS Health earlier this year launched its own next-day delivery service.

    Details on the partnership

    Under the FedEx partnership, Walgreens customers can have their prescriptions delivered to them the next day for $4.99. Customers will receive a text notification when their prescription is ready.

    This initiative builds off of Walgreens and FedEx's previous partnership announced last year in which FedEx provided "drop off and pickup services" at more than 7,000 drugstores nationwide.

    Since FedEx employees are already in Walgreens stores multiple times a day, executives said next-day and same-day delivery will be "efficient, fast, and consistent across the country."

    Walgreens is also working with FedEx to expand same-day delivery of prescriptions in 2019. The service is already available in some markets, including Chicago and New York City.

    Richard Ashworth, president of operations for Walgreens, in a statement said the partnership with FedEx "illustrates our commitment to making filling prescriptions as fast and easy as possible."

    Randy Scarborough, VP of retail marketing for FedEx, said, "Just as FedEx package pick-up and drop-off services at Walgreens locations provide customers with much-needed convenience, the ability to ship prescription medication directly from Walgreens to their homes offers valuable flexibility to best meet individual needs and schedules" (Japsen, Forbes, 12/6; Ellison, Becker's Hospital Review, 12/6; Reuters, 12/6; Walgreens/FedEx release, 12/6).

    What executives need to know about pharmacy

    While historically pharmacy may have been viewed as a cost center, today pharmacy services generate a significant portion of system revenues and are essential to the achievement of strategic system-level priorities.

    To better understand increasingly complex pharmacy issues and the critical role pharmacy plays in overall health system success, download our executive briefings on hot pharmacy topics.

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