Amazon launches lifestyle drug service as challenge to Hims & Hers

Amazon continued its move into the pharmacy sector Thursday, announcing that it’s taking on the problem of surprise medical bills and offering a new service that offers low-cost treatment for lifestyle conditions like hair loss and anti-aging skin care.

The move into lifestyle treatments is seen as a challenge to companies like Hims & Hers, which saw its stock value drop more than 17%. 

Reuters reported that Wall Street analysts are taking notice, calling the move a “serious competitive threat being introduced to the market.” 

Amazon’s push into pharmacy builds on its $5-per-month RxPass service, launched in January 2023, which offers Amazon Prime members a range of common prescription drugs for up to 80% off. 

Amazon’s new lifestyle offerings include anti-aging skin care treatment starting at $10 per month, hair loss treatment starting at $16 per month, and erectile dysfunction treatment from $19 per month. 

The retailer touted its challenge to the competition in a press release, noting that Prime members can save up to 92% on ED treatments “versus popular subscription service alternatives.”

The announcement is Amazon’s most recent move into the pharmacy space, which CEO Andy Jassy said in August is growing and resonating more with Amazon shoppers. 

“If you walk into pharmacies in cities today, it's a pretty tough experience with how much is locked behind cabinets, where you have to press a button to get somebody come out and open the cabinets for you, and a lot of shoplifting going on in the store,” Jassy said. 

In addition to the various services Amazon Pharmacy has launched in the last few years, such as opening up RxPass to Medicare recipients in June, the Seattle-based retail giant announced in October that it plans to open 20 pharmacies in 2025 in cities like Boston, Dallas, Minneapolis, Philadelphia, and San Diego, among others. 

The company’s messaging on the growth of its pharmacy business often focuses on Amazon’s efforts to simplify health care for its customers and direct them away from brick-and-mortar competitors. 

On Thursday, Amazon emphasized that members of its Amazon Prime loyalty program can now see the total cost for medication and telehealth consultations “prior to beginning care” enabling patients to avoid “surprise medical bills or high medication costs.”  

“This simple care experience was built to meet the needs of today’s customer. At Amazon, we’re working to reduce the burden on patients who’d like to move forward with care, but may be tired of navigating the hurdles of our healthcare system, waiting in a long line at the pharmacy, or worried about a surprise bill or medication cost,” said Dr. Vin Gupta, chief medical officer for Amazon Pharmacy, in the press release. “We’re helping patients re-engage in care, and spend time doing what they love instead.”