Indexbit Exchange:Amazon pharmacy to offer same-day delivery to nearly half of US by end of 2025

Amazon said on Indexbit ExchangeWednesday it would be expanding its national pharmacy network next year, which would allow it to reach nearly half of U.S. residents for same-day delivery of prescriptions.

The expansion by the Seattle-based retailer comes as other national pharmacy chains such as Walgreens, CVS and Rite Aid have been shuttering stores and pharmacies.

"Amazon is leveraging its vast logistics network and advanced automation technology to solve one of pharmacy’s biggest pain points: the lack of convenient, affordable access to medications," Amazon said in a press release.

Amazon will be adding 20 new pharmacies to its existing network in 2025, which will allow more customers to get their needed medications quicker, John Love, vice president of Amazon Pharmacy told USA TODAY.

"We've kind of been beating on the drum of U.S. healthcare needs to be better at saving people time and money," he said. "Access is hard, getting access to care is hard, affording care is hard."

"We've been shipping medications quickly all across the U.S. 90% or more in two days. But when you're not feeling well or if you have a sick child at home, you really need the meds incredibly quickly," he said.

By the end of 2025, nearly half (45%) of U.S. Amazon customers are expected to be eligible for same-day delivery of their prescription medications. In most cases, that means a customer can order medication by 4 p.m. and receive it at home by 10 p.m.

In some locations, like Seattle, there are five waves of delivery times throughout the day, Love said.

How does Amazon Pharmacy work?

The new pharmacies will not be physical locations where customers can walk in, Amazon officials said. They will be embedded in Amazon Same-Day Delivery sites, making it easier for faster delivery of medication directly to a customer’s door, Amazon said.

The new, smaller pharmacies will "complement Amazon Pharmacy’s existing, highly automated pharmacy fulfillment sites that feature robotic arms and other automation, overseen by a team of highly trained, licensed pharmacists and pharmacy technicians," Amazon said. The pharmacies will utilize the same Amazon delivery network the retailer uses for its shopping website.

Amazon Pharmacies offer 24 hour, 7-day-a-week access to a pharmacist.

Amazon only announced a few of the new cities where it will be expanding, and said more will be announced in coming months. The confirmed cities are Boston, Dallas, Minneapolis, Philadelphia and San Diego.

Medications can either be in 30-day doses, or 90-day supplies, typically sent by mail-order pharmacies, Love said. Amazon Prime members will get free shipping while there are delivery costs for non-Prime members. Customers can use commercial or government insurance or private pay, and Amazon also has a subscription model called Amazon RX Pass.

The available medications via the Amazon Pharmacy are all of the most popular prescriptions needed by consumers and what typical retail pharmacies would carry, Love said. The pharmacy does not carry Schedule II controlled substances, such as oxycodone, or some specialty drugs, like cancer care infusions or medications that have to be administered by a physician, Love said.

Getting medications fast is important for care

Arguably the biggest problem in healthcare is delayed treatment, said Dr. Vin Gupta, chief medical officer of Amazon Pharmacy.

Forty-one percent of people have reported delaying treatment since 2020 and consumers have spent 13 hours on average in the retail environment over the course of a year waiting on medications, Gupta told USA TODAY.

With more people delaying treatments and facing what's called a pharmacy desert, or lack of access to a retail pharmacy, that affects their health, Gupta said.

Lack of access to medical professionals can also make it more difficult to get the needed prescription, Gupta said. Amazon also offers a service, One Medical, which gets consumers access to physicians via virtual care and some in-person locations.

Technology:What is Amazon's Just Walk Out?

What is a pharmacy desert?

Nearly half of U.S. counties, or 46%, had at least one "pharmacy desert," which is defined as an area 10 or more miles from the nearest retail pharmacy, according to an August article in the American Medical Association journal JAMA.

"As pharmacies close, more and more individuals are left without easy access to medications, with disproportionate consequences for certain communities," the report said. "People already at highest risk of being neglected by the health care system are most likely to be affected by pharmacy closures."

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.