Walmart is in discussions to acquire PillPack, an online pharmacy startup, at a price that it likely to be below $1 billion. The focus of PillPack is on easing the process by which customers order and fulfil drug prescriptions making it an attractive target for Walmart as well as online retailers who are interested in bolstering their healthcare services. The talks coincide with reports that Walmart is also in discussions to acquire Humana, a health insurance giant.
According to sources Amazon has also courted PillPack though nothing materialized. A few weeks ago Amazon was reported to be in talks with JPMorgan Chase and Berkshire Hathaway with a view to forming a partnership aimed at cutting the costs of healthcare for employees. Amazon is also reportedly building a team that will be tasked with finding ways of disrupting the pharmaceutical supply chain market which is worth about $3 trillion.
PillPack packages, organizes and delivers drugs round the clock for its customers including those suffering from multiple chronic conditions. Since it was founded PillPack has raised funding worth approximately $118 million from investors who include Menlo Ventures and CRV. Last year PillPack generated revenues of over $100 million. The value of PillPack was estimated to be $330 million in 2016.
According to experts an acquisition of PillPack by Walmart makes sense especially after the interest the giant retailer has shown in Humana. The two firms are both eyeing opportunities which enable them serve seniors who are suffering from one or multiple medical conditions.
Money transfer business
This comes in the wake of Walmart disclosing that its money transfer business was being expanded to 200 countries. According to the big box retailer the service will be able at its store in the United States from where customers will be able to remit money to other countries within a period of ten minutes. Walmart is offering the service in partnership with MoneyGram.
“There are millions of people sending money around the world to help loved ones with everyday needs or in times of emergency,” Walmart Services’ vice president, Kirsty Ward, said.
The money transfer service of Walmart was initially launched four years ago and it allowed its customers to send money between stores. The aim was to reach the unbanked. Per Federal Deposit Insurance Corporation around 27% of Americans lack access to banking services. According to Walmart the service has saved customers fees amounting to around $700 million due to the fact that its rates are cheaper.