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CVS Health said yesterday that “it would begin offering next-day delivery of prescription drugs and same-day service in some big cities next year, reflecting the company’s worries about potential competition from Amazon,” according to a story in this morning’s New York Times.

The story goes on: “Amazon has not publicly announced its plans. But it has acquired several state-level permits to be a wholesale pharmacy distributor over the past year and recently hired a handful of executives from the drug industry. Anxiety over such a market upheaval is said to have partly driven CVS to enter into talks with Aetna, the large health insurer, over a potential acquisition.”

The delivery service will first become available in Manhattan next month, and will expand early next year to Boston, Miami, San Francisco, Philadelphia, and Washington, DC. Eventually, the company says, it will expand to all markets served by its stores.
KC's View:
First of all, this is a good idea. I assume, however, that they’ll have to handle all the delivery infrastructure themselves; not sure they’d want Instacart drivers handling prescriptions. (Not a slam on Instacart drivers … I just think that such items have to be handled more carefully.)

Also…it’s amazing the degree to which Amazon impacts competitive businesses just when rumors emerge.