The Quick Pharma Race, What's Next For RMG Founders & More

Zepto, Blinkit And The Tricky Waters Of Quick Pharma

It seems there is no stopping India’s quick commerce giants. After groceries and gadgets, they have now set their sights on the most complex category yet – 10-minute medicine deliveries. So, what’s their game plan for the regulated and tricky waters of pharmacies?

Chasing The High: To each their own seems to be the mantra of quick commerce giants wading into medicine deliveries. Instamart is banking on its commission model with PharmEasy to make a dent, while Zepto and Blinkit’s playbook involves controlling the entire supply chain to deliver in under 10 minutes.

A Prescription For Profit? The quick commerce trio is chasing drugs for a good reason. With average order values exceeding INR 1,000, compared to INR 600 for groceries, medicines offer high margins that these companies desperately need for profitability. But unlocking this margin will not be easy.

The Acquisition Dose: Firstly, margins come from owning inventory. This means Zepto, Blinkit, and Instamart will likely have to acquire pharmacy chains to gain licensed premises and qualified staff. But unlike shutting down unprofitable dark stores, exiting pharma locations means writing off significant upfront setup and regulatory costs.

Chained By Compliance: Unlike grocery, pharma delivery operates in a heavily regulated environment that doesn’t bend to startup timelines. It requires specific licences for every state and location, specialised hiring and continuous compliance. This is also a challenge that quick commerce companies have never dealt with before.

Trust Gaps: There are other operational complexities as well, such as cold storage and warehousing norms in prescription medicines. Then there is the foundational issue of trust, where 10-minute delivery platforms don’t have a great track record.

Even established players like Tata 1mg and Netmeds haven’t rushed into 10-minute deliveries, suggesting the challenges run deeper than quick commerce platforms anticipate.

All of this makes us ponder —can the promise of speed really survive the weight of regulation and trust deficits in pharma? Let’s find out…

From The Editor’s Desk

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As the deeptech startup prepares for its maiden launch, can Xovian’s novel RF approach to imaging find takers globally?

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