FILE PHOTO: A stethoscope is placed on displayed Amazon.com and One Medical logos in this illustration taken July 26, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
NEW YORK (Reuters) -Amazon said on Wednesday its pharmacy business in December will begin filling some prescriptions for common medications at electronic kiosks in its One Medical primary care locations, which the company says will reduce barriers to access and limit shipping costs.
Amazon plans to start the offer with One Medical patients in Los Angeles for drugs including antibiotics, asthma inhalers and treatments for high blood pressure, the company said.
The kiosks will be the first in-person pick-up service offered by Amazon Pharmacy, which has been providing prescription services primarily by delivery, said Hannah McClellan Richards, a vice president at Amazon Pharmacy.
One Medical offers a membership structure that allows patients to access primary and urgent care at a subscription fee of $199 annually. Patients without a membership are still able to book an appointment and would be able to use the kiosk, the company said.
Richards said in an interview that the company plans to expand the kiosk model outside of California in 2026 and is in talks with external health systems to introduce the machines through partnerships.
Amazon does not plan to offer medicines that must be refrigerated, such as GLP-1 weight-loss drugs, or more tightly regulated prescriptions like controlled pain medicines through the kiosk.
Inventory for each kiosk will be tailored to the provider, and patients would be able to consult a company pharmacist virtually, Amazon said in a press release.
Amazon.com, the $2.34 trillion e-commerce company, launched pharmaceutical delivery in 2018 through its acquisition of PillPack. In 2023, the company purchased One Medical, a national primary care provider.
Analysts this year have flagged shipping and logistical costs as a potential squeeze on Amazon's profits.
Chief Financial Officer Brian Olsavsky, in a second-quarter earnings call, said the company planned to make strategic decisions on product placement in an effort to shorten delivery routes and improve availability. "We're committed to initiatives that further improve our cost structure," he said at the time.
Richards acknowledged that the most expensive part of the e-commerce supply chain is shipping.
"If you put inventory closer to customers," she said, "your shipping costs go way down and your demand goes way up."
(Reporting by Amina Niasse; Editing by Caroline Humer and Bill Berkrot)
