E-commerce giant Amazon (AMZN) is expanding its same-day prescription drug delivery.
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Amazon’s plan is to get its same-day prescription delivery service into more places. It plans to make half the U.S. eligible for the plan over the course of 2025. Reports note that 20 more cities will get in on the action, and Amazon is already planning for this move by adding pharmacies to its same-day delivery facilities.
The Amazon Pharmacy concept, which will be handling the medication side of things, started in 2020 as a result of Amazon’s Pillpack acquisition. Amazon built on this approach as a way to address “pharmacy deserts.” While there are certainly plenty of pharmacies out there, some places have fewer of them than others. This opens up an opportunity for Amazon to step in.
Faster Deliveries
It might seem like it takes Amazon longer to get stuff to your door. While Amazon has not halted two-day shipping for Prime members, it seems like that two-day goal is more of an aspiration than a goal. But Amazon is working to improve in the face of growing competition.
One method that aims to help is called “Vision Assisted Package Retrieval,” which uses a green light to shine on certain packages that are to be delivered. The delivery driver saves several seconds trying to figure out which package to deliver, and over the course of a day, those seconds can add up.
Is Amazon Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 43 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 42.52% rally in its share price over the past year, the average AMZN price target of $222.95 per share implies 20.85% upside potential.
