Retail pharmacy chain Walgreens has cut a new deal with DoorDash that will bring on-demand delivery of over-the-counter medications and other health, wellness and convenience products to consumers, the companies announced today.
Starting today, customers living in the Chicago, Atlanta and Denver areas can place orders for more than 2,300 items via the DoorDash app or website. The companies said they are planning to expand this service by the end of the summer to include more than 5,000 items, as well as the Cincinnati, Cleveland, Minneapolis, Oklahoma City, Phoenix, Sacramento and Seattle areas.
WHY IT MATTERS
Last-mile logistics has been a clear area of growth for retail throughout the COVID-19 crisis, and there's reason to believe there's demand among healthcare consumers as well. Startups specializing in prescription delivery had found support in the market and from investors even before the public health emergency, while a growing number of D2C telehealth businesses like Roman and Hims have earned their spot selling and delivering a broad array of wellness products.
By relying on DoorDash's platform and logistics infrastructure, Walgreens can extend the reach of its nonprescription retail business without needing to invest in its own delivery services.
“Our collaboration with DoorDash is the latest example of our ongoing focus on enhancing our customer experience with new convenient, accessible and safe shopping and delivery options,” Stefanie Kruse, VP of digital commerce and omnichannel at Walgreens, said in a statement. “We continue to offer additional ways to get essential retail products into the hands of customers at their door stoop or wherever and whenever is most convenient for them.”
THE LARGER TREND
The business of retail pharmacies has been shifting over the last handful of years to become more digital and more consumer focused.
A couple years ago the chain launched a digital platform for connecting its customers to healthcare providers, services and products, and in the time since has added names like Propeller Health and Dexcom to that selection. The company has also bumped into a roadblock or two with the implementation of its customer mobile app.
Other recent headlines in the space include an update to CVS Pharmacy's app that reads prescription labels out loud for users with visual impairments, and Walmart's purchase of digital medication-management company CareZone's tech platform.