Amazon, A Small Pharmacy Player, Seeks To Dent CVS And Walgreens Medicare Share
June 3, 2025
Amazon Pharmacy is rolling out new features in hopes of attracting more seniors covered by Medicare’s drug benefit, a potentially lucrative market dominated by CVS Health and Walgreens.
In an announcement Tuesday, Amazon said it is launching a new “caregiver support feature” that allows its customers to have someone else manage medications on their behalf. Once the caregivers are verified through a secure invitation, “caregivers can now manage medications for their loved ones,” the company said.
In addition, customers with Medicare Part D drug coverage can now accessPillPack, Amazon’s online pharmacy that is designed to simplify medication management, particularly for multiple prescriptions via pre-sorted and labeled packets delivered directly to patients’ doors.
It’s the latest effort by the online retail giant Amazon to invest in its pharmacy business, which Drug Channels Institute estimates generated “less than $2 billion in 2024 revenue – just 0.3% of the total prescription dispensing market.”
Amazon doesn’t disclose how many prescriptions it fills or financial information regarding its pharmacy and healthcare businesses. Amazon, which purchased PillPack seven years ago this month for more than $750 million, has yet to disclose revenues for its Amazon Pharmacy business in the parent company’s quarterly earnings statements.
In contrast, CVS filled 435 million prescriptions in the first quarter for an increase of 4.3% from the year ago period while Walgreens filled more than 309 million prescription in its most recent quarter, up 3.4%. Combined, Walgreens and CVS generated more than $370 billion in prescription revenues last year, According to Dryg Channels.
CVS and Walgreens have the largest share of the U.S. prescription market by most measures at a combined 40% while Amazon’s share is less than 1%, according to some studies. Neither CVS nor Walgreens would disclose how many Medicare Part D prescriptions the companies fill.
By adding features for seniors, Amazon Pharmacy is looking to tap a Medicare prescription market growing by thousands every day. More than 11,000 Americans are turning 65 every day.
Amazon is also trying to find a niche with Americans who are caring for an elderly family member. More than 50 million people in the U.S. “are taking care of an aging family member,” Amazon said citing data from AARP. The aging population, coupled by industry statistics showing up to one-third of Americans don’t take their medications as directed or never fill them.
“These updates deliver what our customers have been asking for—simpler medication management for themselves and their loved ones,” Amazon Pharmacy vice president John Love said. “Whether you’re a caregiver juggling multiple prescriptions for an aging parent, or a customer who could benefit from the convenience of pre-sorted packets delivered reliably each month, we’re removing barriers and making pharmacy work better for you.”
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