• Market Crumbs

Amazon Eyes Pharmacies In Latest Move


The previous week has been good for shareholders of pharmacies such as CVS and Walgreens following vaccine data from Pfizer and Moderna. The two stand to benefit if and when a vaccine comes to market and have already struck a deal with the U.S. Centers for Disease Control to administer the vaccine at long-term care facilities.


With shares of CVS and Walgreens each having gained about 30% so far for the month through Monday, Amazon sent them crashing down yesterday with one press release.


Amazon announced two new pharmacy offerings as it eyes pharmacies as the next sector to go after. Amazon has been eyeing the space for a few years following its nearly $1 billion acquisition of PillPack in 2018.


Amazon Pharmacy will let customers order their prescription medicines from Amazon and have them delivered to their homes, with Prime Members getting free two-day delivery. Users can create a secure pharmacy profile that stores insurance and prescription information. Amazon Pharmacy will be available in every state except for Hawaii, Illinois, Kentucky, Louisiana and Minnesota.

"We designed Amazon Pharmacy to put customers first – bringing Amazon's customer obsession to an industry that can be inconvenient and confusing," Amazon Pharmacy Vice President and PillPack co-founder TJ Parker said. "We work hard behind the scenes to handle complications seamlessly so anyone who needs a prescription can understand their options, place their order for the lowest available price, and have their medication delivered quickly."


Amazon also announced Prime members can save on medications through Amazon Pharmacy when purchasing without insurance, with more than 50,000 other participating pharmacies in the U.S. offering savings as well. Prime members can save up to 80% off generic and 40% off brand name medications when purchasing without insurance.


The move by Amazon makes sense as the company continues to leverage its size to offer consumers the ability to buy virtually everything. The move also means Amazon is entering another market where rivals Walmart and Target have long had a presence.


"As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store,” Amazon Senior Vice President of North American Consumer Doug Herrington said.


With a CVS and Walgreens on virtually every corner, it makes sense Amazon has its eyes on them as it continues to expand its reach.


Leftover Crumbs

  • Twitter unveils Fleets. Twitter rolled out a new feature called "Fleets" yesterday which lets users post a tweet that deletes after 24 hours. Twitter says it was encouraged by the tests in Brazil, Italy, India and South Korea which led to users talking more on Twitter. "Those new to Twitter found Fleets to be an easier way to share what's on their mind," Twitter said in a blog post. "Because they disappear from view after a day, Fleets helped people feel more comfortable sharing personal and casual thoughts, opinions, and feelings."

  • Homebuilder confidence hits record high. For the third consecutive month, homebuilder confidence in single-family homes in the U.S. hit a record high as the National Association of Home Builders' Wells Fargo Housing Market Index hit 90 in November. The measure stood at 71 last November and fell as low as 30 in April as Covid-19 spread throughout the U.S. "Historically low mortgage rates, favorable demographics and an ongoing suburban shift for home buyer preferences have spurred demand and increased new home sales by nearly 17% in 2020 on a year-to-date basis," NAHB Chairman Chuck Fowke said.

  • Masa Son prefers cash right now. SoftBank founder and CEO Masayoshi Son said he has sold about $80 billion of assets so far this year after previously targeting $40 billion in asset sales. "In the next two or three months, any disaster could happen," Son said. "So we're just preparing for the worst case scenario." Son said the cash could be used to acquire undervalued assets, shore up its SoftBank Vision Fund investments or repurchase SoftBank stock.

  • Autodesk acquires Spacemaker. Engineering and design giant Autodesk announced it has agreed to acquire Norwegian startup Spacemaker for $240 million net of cash. Spacemaker offers an AI software that helps architects, urban designers and real estate developers quickly make more informed design decisions. "With two billion more people expected to call our planet home by 2050, speed of design and sustainability in urban planning must be priorities," Autodesk president and CEO Andrew Anagnost said. "Spacemaker technology offers a fundamental shift in how we imagine and build cities to keep people and the planet healthy."

  • New lobbying group targets EV adoption. Tesla and Uber are among the notable companies that will launch a new lobbying group called the Zero Emission Transportation Association to promote policies that will enable 100% electric vehicle sales in the U.S. by 2030. "By embracing EVs, federal policymakers can help drive innovation, create hundreds of thousands of new jobs and improve air quality and public health," ZETA Executive Director Joe Britton said. "ZETA's formation recognizes a pivotal moment for national leadership and reflects the will of the growing clean transportation sector."