+7 C°
Traffic jam:   0

Capsule startup expands as prescription delivery battle heats up

21 August 2020
3 min.
Capsule startup expands as prescription delivery battle heats up

Pharmacy giants and tech titans are in a crowded battle to deliver your prescriptions — but a startup coming off a coronavirus-fueled growth spurt thinks it can beat them.

Consumers wary of waiting in packed drugstores have turned to digital pharmacy services like Capsule, a New York-based company that’s seen a surge of new customers during the pandemic.

Capsule CEO Eric Kinariwala says COVID-19 has sped up a shift away from retail pharmacies that the industry was already ripe for. His competitors have rushed to adapt amid the crisis — Walgreens and CVS made their nascent drug delivery services free as the virus shut most Americans in their homes, and Uber unveiled on-demand deliveries in Seattle and Dallas this week.

But the competition hasn’t stopped an explosion of growth for Capsule — the number of people bringing prescriptions to the company from other pharmacies has increased fivefold amid the pandemic, Kinariwala said.

That’s allowed Capsule to launch in three other major cities — Minneapolis, Boston and Chicago — since April and expand locally to Westchester County, Hoboken and Jersey City. It’s also hired more than 400 people since March 1, roughly doubling its workforce.

“I think COVID has exposed people to a new way of doing things — a better way of doing things — with their health care through necessity,” Kinariwala told. “We’re seeing that the early customers that we brought in in March and April are sticking around.”

Capsule still faces an uphill battle against big chains such as CVS and Walgreens, whose size allows them to buy larger quantities of drugs at cheaper prices, according to Jonathan Palmer, a Bloomberg Intelligence senior equity research analyst who covers the pharmacy industry.

It will also have to contend with Uber, which aims to expand its drug deliveries in the coming months, and Amazon, which acquired pharmacy startup PillPack in 2018.

“The consumerism aspect puts Capsule in the right place at the right time, but it’s going to be a challenge to get any sort of scale relative to those other players who could drop millions upon millions of dollars into that product lineup, if you will, at any given time,” Palmer told.

But Kinariwala countered that Capsule’s “seamless” consumer experience sets its apart.

The company has developed technology that handles routine tasks like data entry, allowing its in-house pharmacists to focus on helping customers, he said. And Capsule has kept its on-time delivery rate “north of 99 percent” throughout the pandemic, Kinariwala said.

“There are no brands in health care that consumers care about and more importantly there are no brands in health care that care about consumers, and that’s our mission,” Kinariwala said.

There are plenty of consumers for the taking. A Bank of America Securities survey released in June indicated that up to 30 percent of patients were willing to permanently shift to mail pharmacies, which take up less than 20 percent of the market today.

“Once you’ve moved there’s no real reason to move back, in terms of an individual prescription,” BofA Securities director Mike Cherny told. “Unless you had a bad experience — a prescription didn’t show up, you had some challenges converting the prescription over — once it’s set up, it’s just easy to keep in place.”

Источник: https://nypost.com/2020/08/21/capsule-expands-as-prescription-delivery-battle-heats-up/ 

Persons2 and Companies8 in the news

Senior Equity Research Analyst & Team Leader at Bloomberg LP
1 place
Founder and CEO of Capsule
2 place
2 place
3 place
4 place
5 place
6 place
CVS Health
7 place
Bloomberg L.P.
8 place


Press releases on the topic

View all

Recent Press Releases

View all


GlobalNY.biz Press Releases are the latest news from New York companies.
Official press releases of New York companies are regularly published on the resource. You can find out the latest news of enterprises in the corresponding section on the main page. Placing press releases is a traditional and effective way to promote your business. It allows organizations to announce themselves and their products and services to the widest possible audience. In this case, the informational occasion can be anything: attracting people to an event or conference, highlighting new products or personnel appointments. If you set a goal to draw attention to your information, then GlobalNY.biz will become your reliable assistant in this matter. Thanks to the portal, your press release will be seen by reviewers of leading Internet publications, clients and partners.
GlobalNY.biz allows representatives of companies and organizations in New York to independently post a press release when registering on the resource. The most important feature of GlobalNY.biz is that all publications of New York companies fall into the archives and will be available from the search for a long time. You just need to add the press release to the news feed.
GlobalNY.biz offers its customers a subscription service that allows companies to regularly publish press releases on favorable terms. In addition, the business portal makes it possible to more fully tell about the life of the company by adding photos and videos, personas and employee quotes. All information materials have active links and will lead potential customers to your resource.
Alena Potapova

Development Director