Flipkart may be the latest entrant in the e-pharmacy space in India, coming on the heels of its rival Amazon’s launch of Amazon Pharmacy in Bengaluru. According to a Times of India report, Flipkart is building its internal team, but is also in talks with PharmEasy for a partnership.
The report said that Flipkart CEO Kalyan Krishnamurthy has held talks with PharmEasy’s leadership for a partnership. “Flipkart also wants to be sure of the legal framework before rolling out the service as there are ambiguities with parts of law for selling medicine online, which has created friction with traditional chemists,” a source told the newspaper.
This comes even as PharmEasy is in talks with Medlife for a merger, with the latter looking at a 20-30% stake in the new entity that will be formed.
Amazon said last Thursday that it was entering the e-pharma space. The service is being launched in Bengaluru initially and may be scaled up to other cities in the future.
"As part of our commitment to fulfil the needs of customers, we are launching Amazon Pharmacy in Bengaluru allowing customers to order prescription-based medication, in addition to over-the-counter medicines, basic health devices and Ayurveda medication from certified sellers," an Amazon spokesperson had said. This is particularly relevant in present times as it will help customers meet their essential needs while staying safe at home, the spokesperson said.
E-pharmacies need to register with the Central Licencing Authority for selling prescription drugs online.
Amazon’s move did not go down well with the All India Organisation of Chemists and Druggists (AIOCD), which said it represents more than 8.5 lakh members, who in a letter to Amazon’s India head and CEO Jeff Bezos said it was illegal. It claimed that e-pharmacies are illegal and not recognised by law under the Drugs and Cosmetics Act. AIOCD said that as per the rules, an original prescription is necessary for every ‘prescription drug’ that is sold, and the drug needs to be dispensed from a licensed premise, because of which the online sale of drugs is illegal.
Healthtech start-ups like 1mg, PharmEasy and Medlife have seen strong growth in the past few months as people turned to online platforms to order their medicines while maintaining social distancing amid the pandemic. However, Flipkart’s potential comes as the e-pharma industry is seeing consolidation.