Mountain View startup aims to disrupt $225B pharmacy industry

Tuesday, July 25, 2017 05:10PM
A Mountain View start-up has a goal to disrupt the $225 billion retail pharmacy industry by competing against brick-and-mortar drug stores.


MOUNTAIN VIEW, Calif. - A Mountain View start-up has a goal to disrupt the $225 billion retail pharmacy industry by competing against brick-and-mortar drug stores.

One of the startup's customers, Glenda Strombom, says her husband is on medication for dementia. Her life has been made less stressful because the drugs arrive at her front door for free, same day, by using an app on her phone.

NowRx estimates there are 40 drug stores in a five-mile radius of its facility, yet it can fulfill prescription orders up to Burlingame on the Peninsula and down to much of the South Bay, including all of San Jose, from one location.

A registered pharmacist receives and verifies prescriptions sent electronically by doctors or photographed by customers. A hard copy prescription must be turned into the delivery driver before the drugs can be handed over.

The drivers are direct employees of NowRx, who are background checked. NowRx participates in major insurance plans just as other pharmacies do.

CEO Cary Breese says large drug chains could lose business as a generation of customers used to using apps to order home delivery of meals or to hail ride services begin to have prescription delivery on demand as an option. It is a boon to adult care-giving sons and daughters who otherwise have to make trips to the pharmacy on behalf of their elderly parents.

NowRx hopes to expand soon to offer free prescription delivery to the entire Bay Area, then go nationwide in 20 top markets. It has a goal of generating $1 billion in revenue in five years.

Watch ABC7 News at 4 p.m. and 6 p.m. for David's full report.

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