Amazon, The CVS-Aetna Merger and The Future of Healthcare

CVS Opioids
San Carlos, CA - Aug. 19, 2016. CVS Pharmacy. Originally named Consumer Value Store, CVS Pharmacy is now a subsidiary of the American retail and health care company CVS Health. (jejim / Shutterstock.com)

Amazon has just established its position in the world of global business by possibly overturning another industry without even launching a product. According to sources, CVS Health (CVS) is in talks to purchase Aetna (AET) for $66 billion in a hit merger that could restructure the health insurance industry. One of the factors rumored to be the driving force behind the deal is Amazon.

Wall Street Journal claims that the merger was designed to protect these respective companies if Amazon is to set foot in the pharmaceutical business. No official statement has been released from either company, neither CVS nor Aetna addressing the speculations.

Rumors about Amazon’s intentions to make prescription drugs easily accessible via home delivery are a perfect depiction of the company’s motivation and ambition. They aim to offer premium service while giving access to every consumer product merely a few clicks away.

Amazon Shipping
PARIS, FRANCE – JAN 27, 2016: Customer hand taking the parcel as the UPS United Parcel Service young female postal delivery courier in front of door scans package from Amazon Prime (Hadrian / Shutterstock.com)

Amazon initially started off as an online bookseller. With the progression of time, Amazon has conquered almost every field of business offering 1-hour deliveries in selected areas. Such efficiency and organization immediately cement Amazon’s position to deliver drugs both online and offline.

It may sound like a stretch for a company that started as an online bookseller. But Amazon now owns the Whole Foods grocery chain and is testing its corner stores. It also offers one-hour delivery in specific markets. That potentially puts it in a strong position to deliver prescription drugs online and offline.

Despite the concerns of many, Amazon has managed to achieve pharmaceutical licensing in over 12 states. Regardless of what they choose to do in the future, this would not be the first time Amazon destroyed another market with so much of a rumor.

Amazon Boxes
Cat inspecting multiple Amazon Prime boxes delivered by courier and left by the door by Hermes delivery courier (Hadrian / Shutterstock.com)
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Reginald Edward
Reginald has over 20 years of experience in business and technology. Reginald has an undergraduate degree in economics and completed post graduate work in business. He has extensive experience in a variety of fields, including: finance, media relations, marketing, strategic planning, public policy, and administration.