All Georgia residents and most people in the Southeast can now get their prescriptions delivered the next day through digital health startup Ro because of its Atlanta expansion. Medly Pharmacy allows anyone within a 50-mile radius of its Moreland Avenue location to receive same-day shipping on their prescriptions. A Nimble and Uber partnership means Atlanta residents could get prescriptions in as little as an hour.
These startup expansions into Atlanta represent a growing trend in the healthcare industry toward pharmaceutical delivery, which was accelerated by the pandemic.
Safety concerns made delivery or contactless pickup options for medicines a necessity over the past year. That trend is poised to continue long after the pandemic. The market for prescription delivery services is expected to grow 18.4% to a $434.3 million valuation between 2020 and 2030, according to a report from Future Market Insights.
The argument for prescription delivery services is similar to retail e-commerce delivery — it’s more convenient than going into a store, reduces possibilities of spreading germs and saves people time.
As the fourth fastest-growing metro in the U.S., an Atlanta location allows these startups to reach a growing number of people. Atlanta is also considered a gateway to the South, a region home to about a third of the U.S. population, because of its strong logistics and transportation infrastructure.
Ashish Advani, a pharmacist by trade and founder of Atlanta’s InPharmD medicine data startup, says the prescription delivery trend started about five years ago with PillPack, a startup that Amazon bought in 2018 for $173 million. That company delivers medications in packages based on what day and time a person should take them.
PillPack was geared toward older folks with chronic conditions. Young people, who are accustomed to online shopping, are a huge market opportunity within this industry, Advani said.
Prescription delivery services and other digital health options also allow healthcare professionals to reach previously underserved people, some healthcare startup executives say.
Ro opens local distribution center
Ro, a New York-based, direct-to-consumer health startup valued at more than $5 billion, expanded to Atlanta as part of its plan for a nationwide network of pharmaceutical distribution centers. The center, located in Peachtree Corners’ Atlanta Tech Park, is its seventh location.
Ro has a “handful” of employees at the distribution center and plans to add at least 20, including pharmacy techs, Ro Chief Operating Officer George Koveos said. The startup uses carrier services to deliver medications.
"Georgia, in general, has an issue with access to healthcare,” Koveos said. “With the power of Ro, we can integrate a national network of providers with a national fulfillment network.”
Georgia is ranked No. 46 for health system performance, according to a 2020 Commonwealth Fund report, mostly because of problems with access and affordability.
Ro offers various other online services to patients, including telehealth, home visits and pharmaceutical help. Founded in 2017, Ro doesn’t take insurance but says it provides affordable healthcare without it.
Advani says pharmacy delivery startups should still prioritize having pharmacists and trained medical professionals to answer questions and concerns. The U.S. already has a problem with taking medicine wrong or not taking it at all, he said, so a conversation with a trained pharmacist should still be part of the prescription process.
Medly Pharmacy's Atlanta location
Medly Pharmacy, a New York-based, venture-backed digital pharmacy startup, opened a location on Moreland Avenue, also citing Georgia’s access to care as its reason.
The Atlanta location will have up to 50 employees, Medly Chief Marketing Officer Chirag Kulkarni said. The company employs full-time drivers for deliveries. Medly Pharmacies are also in six other states, including Florida, North Carolina and Texas.
Medly allows people to come into the pharmacy to fulfill their prescriptions, like the traditional model, but also offers same-day delivery. Patients can contact Medly pharmacists with questions or concerns through phone, text, email or the mobile app.
“It’s about meeting people where they’re comfortable,” Kulkarni said.
Nimble RX expands coverage locally
Nimble, a venture-backed startup based on the West Coast, partners with Uber Technologies (NYSE: UBER) to deliver prescriptions through the rideshare service. Uber Eats users in Atlanta now also have access to on-demand prescription delivery, according to a March announcement.
Drivers pick up prescriptions from neighborhood pharmacies and deliver them through the Uber Eats app. The service is also available in Chicago, New York City, Miami, Los Angeles, San Diego and Orange County.
