TinyRx raises $5M to partner with local pharmacies on prescription delivery service

By Aditi Pai
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TinyRxSan Francisco-based TinyRx, a prescription delivery service, launched this week with $5 million in funding from Eight Partners, Google Ventures, Stanford’s StartX, as well as angel investors.

“When the majority of prescriptions are being filled by a few large players that have interests well beyond a great pharmacy experience, the average patient loses,” TinyRx Cofounder Christopher Bockman said in a statement. “TinyRx is creating a more competitive market for local pharmacies that prioritize patients and their care above selling chocolate bars and dish soap. The big winners will not only be patients but also the health care system at large.”

TinyRx will deliver users' existing prescriptions to any location that the user chooses. To use the service, consumers enter whichever prescriptions they have into the TinyRx website. The company will then transfer the prescriptions to a local, independent pharmacy and pick them up. From there, instead of mailing them, TinyRx will then hand deliver the prescriptions, in discreet packaging, to whichever location the user chooses for free. The cost to users, according to TinyRx, is just their usual co-pay -- or less, if TinyRx is able to get a lower rate.

TinyRx doesn't currently offer an app, the company is currently hiring an engineer to design and implement native iOS and Android apps.

TinyRx also offers a prescription coupon index that aims to provide consumers with a lower price on their drugs. The company takes most forms of insurance including UnitedHealthcare, Aetna, Anthem Blue Cross, and Health Net. At the moment, TinyRx only delivers to consumers in San Francisco, Oakland, and Berkeley, though the company said it plans to roll out the service to additional markets in early 2016.

The company makes money through revenue sharing agreements with local pharmacies. TinyRx also charges its users $10 for express deliveries.

Another prescription delivery service, PillPack, which first launched its service in February 2014, announced its first app, for iOS and Apple Watch, in July. Since its launch, PillPack has shipped more than 1 million dose packs and raised $62 million in venture capital. Unlike PillPack, TinyRx is not, itself, a pharmacy.