India’s rapid commerce revolution, which swept groceries down to gadgets in less than three years and posed a serious challenge to retail chains and kirana stores, is now opening up a new frontier: pharmaceutical delivery.
Tata 1mg, PharmEasy and Apollo 24/7 are piloting ultra-fast drug delivery services, according to key executives of these companies. Leveraging partnerships and advanced logistics, these companies aim to deliver prescriptions as quickly as groceries or small tools, potentially reshaping access to health care.
Tata Digital-owned 1mg is partnering with BigBasket to test fast drug delivery in select cities by December. “We will pilot it in a few cities from the end of December to early January and roll it out to all cities by the end of January,” BigBasket co-founder and CEO Hari Menon told Mint in an email response.
Tata 1mg currently offers prescription and over-the-counter medications, as well as physician consultation and lab testing. A senior official of Tata 1mg said that the platform can currently deliver medicines from retail stores in Gurgaon within 30 to 60 minutes. Additionally, rapid laboratory testing for fever testing is available in some cities.
“For fever detection panels, consumers need to know as quickly as possible to determine treatment options, so faster service is really helpful to them. Therefore, we are seeing a lot of use of such services,” the executive said.
Apollo 24/7 has also launched faster delivery pilots in key markets like Delhi-NCR and Bengaluru.
Madhivanan Balakrishnan, CEO of Apollo HealthCo, which runs the Apollo 24/7 app, told Mint in a written reply: “We have launched a new initiative to deliver medicines in 19 minutes through selected codes spread across five cities .
Swiggy is working with PharmEasy on a pilot basis to deliver medicines in Bengaluru within 10 minutes using Instamart’s dark store.
However, it is unclear whether Tata 1mg’s tie-up with BigBasket will use 1mg’s existing infrastructure or rely on BigBasket’s dark stores. A top executive said they plan to leverage the combined strengths of both companies – 1mg’s expertise in drug delivery and BigBasket’s fast commerce.
obstacles on the road
But to get ultra-fast drug delivery fully off the ground, careful attention needs to be paid to the critical issues of inventory management, drug storage and regulatory compliance. Companies need to address challenges such as ensuring drugs are stored in the right conditions and that fast delivery times do not compromise safety standards as they scale up.
These operational hurdles are particularly important as regulators and consumers alike want safety not to be sacrificed for speed.
“Addressing these challenges requires advanced technology and strong operational strategies,” Balakrishnan said. For example, Apollo 24/7 focuses on real-time inventory visibility and efficient route coordination to support fast delivery times.
The All India Organization of Chemists and Pharmacists (AIOCD) has raised concerns over the rapid delivery model, especially when it comes to prescription verification, and warned of potential risks if security measures are bypassed. In a letter to the Drug Controller General of India (DCGI), AIOCD cited the recent Swiggy-PharmEasy partnership as an example of these risks.
The regulatory framework for e-pharmacies is still being developed, although a Madras High Court ruling in June in favor of online platforms may pave the way for more formal guidelines.
speed requirements
Rapid delivery platforms are growing faster than the broader market, which could bode well for time-sensitive items like medicines.
Sujay Shetty, global health industry consulting leader at PwC, said: “If this is a forecast, there will be very good prospects for the time-sensitive pharmaceutical industry, especially over-the-counter (OTC) and pediatric applications. needs.
Shetty noted that collaboration between fast delivery platforms and e-pharmacies can help resolve regulatory and logistical hurdles. While e-pharmacies have existing logistics and regulatory clearances, faster delivery times require sophisticated demand forecasting and planning—already perfected in express commerce.
This drive for faster service is translating into financial growth.
Tata 1mg operating income grows 21% to $Driven by online drug sales, sales reached 1,968 billion rupees in fiscal 2024, and net loss narrowed to $313 crore in FY24.
Apollo HealthCo’s revenue increased 17% annually in the second quarter of fiscal 2025, in part due to Apollo 24/7. The platform’s gross merchandise value (GMV) increased 2% year-on-year to $757 crores. The company said it has been able to reduce Ebitda losses $169 Crores Rs. $Online revenue for the September quarter was Rs 100 crore.
A report by the India Brand Equity Foundation (IBEF) shows that India’s online pharmaceutical industry is still in its infancy, with e-pharmacies accounting for only 2-3% of the country’s total pharmacy sales in 2023.
However, the e-pharmacy market is expected to grow at a CAGR of 44% to reach US$4.5 billion by 2025. $Apollo HealthCo, which includes Apollo 24/7 and its pharmaceutical distribution unit, has revenue of Rs 2,475 crore.
traditional pharmacy
Just like local kiranas or neighborhood stores, traditional pharmacies are also likely to feel the impact of fast commerce as they compete with the speed and convenience of online delivery.
According to the All India Consumer Goods Distributors Federation, a recent report showed that more than 200,000 small retailers have closed down with the rise of e-commerce. While e-pharmacies currently account for only a small portion of pharmacy sales, this share is expected to grow rapidly as the industry attracts increasing investment.
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But not everyone is ready to embrace these changes. Many consumers still prefer neighborhood pharmacies because of the speed and personal contact they offer.
Sameera Kamulkar, 52, of Bengaluru orders medicine for her father in Mumbai through the Tata 1mg app, but says, “If it’s for us, I usually get it from my pharmacist within 15 to 20 minutes… I only contacted him via WhatsApp.
As demand grows, fast commerce platforms are rapidly scaling up, offering more products and increasing average order value (AOV). According to an October report from financial services firm Nomura, gross order value (GOV) in the fast commerce sector is expected to increase by about 120% annually in fiscal 2026. Zomato CEO Deepinder Goyal said in March that their fast commerce business Blinkit expected to scale up its food delivery business by 2025.
Currently, physical pharmacies remain flexible. “Brick-and-mortar pharmacies still exist…there will be some impact, but it’s too early to say,” Shetty said, emphasizing the uncertain impact of these changes on traditional pharmacy businesses.
Expansion of rapid medical services
It’s not just pharmacies adopting a rapid delivery model; rapid medical services may also be on the rise in the near future.
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Hyderabad-based Red.Health, India’s leading ambulance services startup, is expanding into rapid emergency medical services. Red.Health has provided ambulance services within 15 minutes in more than 20 cities and is currently piloting emergency check-up services within 8 minutes in Hyderabad, which is planned to be launched in mid-November.
“Investors are also interested in this,” said Prabhdeep Singh, CEO of Red.Health.
