India’s rapid commerce revolution, which transformed groceries into gadgets and posed a daunting challenge to retail chains and Kirana stores in just three years, now faces a new frontier: delivery of medicines.

Tata 1mg, PharmEasy and Apollo 24/7 are testing super-fast drug delivery services, according to top executives of these companies. Leveraging partnerships and advanced logistics, these companies aim to deliver prescriptions as quickly as groceries or gadgets, potentially reshaping healthcare accessibility.

1mg, owned by Tata Digital, partners with GrandPanier test rapid drug delivery in some cities by December. “We will test in a few cities by the end of December-early January and roll out to all cities by the end of January,” Hari Menon, co-founder and CEO of BigBasket, told Mint in an email response.

Tata 1mg currently offers prescription and over-the-counter medications, as well as medical consultations and laboratory tests. A senior Tata 1mg executive said the platform currently delivers medicines within 30-60 minutes from its retail stores in Gurugram. Additionally, rapid laboratory tests for fever panels are available in select cities.

“For fever panels, consumers need to be informed as early as possible to determine the course of treatment, so faster service helps them. As a result, we are seeing significant adoption of these services,” the executive said.

Apollo 24/7 has also introduced a pilot project for faster delivery in key markets including Delhi-NCR and Bengaluru.

“We have launched a new proposition of medicine delivery in 19 minutes via select pin codes across five cities,” Madhivanan Balakrishnan, CEO of Apollo HealthCo, which runs the Apollo 24/7 app, told Mint in a written response. We have seen a significant increase in demand in places where the pilot project was launched in June this year, Balakrishnan said.

Swiggy is piloting a partnership with PharmEasy to deliver medicines in less than 10 minutes in Bangalore, using Instamart’s dark stores.

However, it is unclear whether Tata 1mg’s partnership with BigBasket will use 1mg’s existing infrastructure or rely on BigBasket’s dark stores. A senior executive said he plans to leverage the combined strengths of the two companies: 1mg’s pharmaceutical delivery expertise and BigBasket’s speed of commerce.

Obstacles on the way

But for ultra-fast drug delivery to fully take off, critical issues related to inventory management, drug storage, and regulatory compliance require attention. Companies will face challenges such as ensuring that medicines are stored in good conditions and that rapid delivery times do not compromise safety standards as they evolve.

These operational hurdles are particularly crucial as regulators and consumers expect that safety will not be sacrificed for speed.

“Addressing these challenges requires advanced technology and robust operational strategies,” Balakrishnan said. Apollo 24/7, for example, focuses on real-time inventory visibility and efficient route coordination to support rapid delivery times.

The All India Organization of Chemists and Druggists (AIOCD) has raised concerns over the fast delivery model, particularly with regard to verification of prescriptions, warning of potential risks if security measures are circumvented. In a letter to the Drugs Controller General of India (DCGI), the AIOCD cited the recent Swiggy-PharmEasy partnership as an example of these risks.

A regulatory framework for e-pharmacies is still in the works, although a June ruling by the Madras High Court in favor of online platforms could pave the way for more formalized guidelines.

The speed requirement

Fast delivery platforms have outpaced the market as a whole in terms of growth, which could bode well for time-sensitive products like pharmaceuticals.

“If you take this as an indicator, for the pharmaceutical sector, which can be time sensitive – especially over-the-counter (OTC) drugs and pediatric applications – there will be very good demand,” Sujay Shetty, head advisory to PwC Global Health Industries. and Indian healthcare industries leader PwC India told Mint.

Shetty noted that partnerships between fast delivery platforms and e-pharmacies could help overcome regulatory and logistical hurdles. Even though e-pharmacies have logistical and regulatory approvals, faster delivery times require sophisticated demand forecasting and planning, already refined in rapid commerce.

This desire to accelerate service translates into financial growth.

Tata 1mg’s operating revenue grew 21% to ₹1,968 crore in FY24, driven by online drug sales, while the net loss narrowed to ₹313 crore in FY24.

Apollo HealthCo’s revenue grew 17% year-over-year in Q2 FY25, driven in part by Apollo 24/7. The platform’s gross merchandise value (GMV) increased 2% year-over-year to reach ₹757 million. The company said it managed to reduce the Ebitda loss by ₹$169 million to ₹100 crore in e-commerce during the September quarter.

The online pharmaceutical industry in India is still nascent, with e-pharmacies accounting for only 2-3% of the country’s total pharmacy sales in 2023, according to a report by the India Brand Equity Foundation (IBEF).

However, the e-pharmacy market is expected to grow at a compound annual growth rate of 44%, reaching $4.5 billion by 2025. This potential has piqued investor interest: in April, the e-pharmacy company private equity Advent International invested ₹2,475 crore in Apollo HealthCo, which includes Apollo 24/7 and its pharmaceutical distribution arm.

Traditional pharmacies

Much like local kiranas, or neighborhood stores, traditional pharmacies can also feel the impact of fast-paced commerce as they compete with the speed and convenience of online delivery.

According to a recent report, more than 200,000 small retailers have closed their doors due to the rise of e-commerce, according to the Consumer Products Retailers Federation of India. Although e-pharmacies currently represent only a fraction of pharmacy sales, this share is expected to grow rapidly as the sector attracts more investment.

More here | Despair in Kiranas as rapid trade advances

But not everyone is ready to accept these changes. Many consumers still prefer neighborhood pharmacies for the speed and personal connection they offer.

Sameera Kamulkar, 52, based in Bangalore, orders medicines for her father in Mumbai through the Tata 1mg app, but says: “When it’s for us, I usually get it from my pharmacy within 15 to 20 minutes. . I just send him a WhatsApp.” that it might consider switching to online platforms if they started offering faster deliveries.

Fast commerce platforms are rapidly expanding to include more offerings and increase average order value (AOV) as demand increases. According to an October report from financial services firm Nomura, gross order value (GOV) in the fast commerce sector is expected to grow around 120% year-on-year in FY26. Zomato CEO , Deepinder Goyal, said in March that his fast commerce business, Blinkit, is expected to overtake its food delivery operations by 2025.

For now, physical pharmacies remain resilient. “Brick and mortar pharmacies are still very much here…there will be some impact, but it’s too early to tell,” Shetty noted, highlighting the uncertain impact of these changes on traditional pharmaceutical companies.

Develop rapid health services

It’s not just pharmacies that are adopting a fast delivery model; rapid healthcare services may also see an increase in the near future.

Read also | The rise of rapid commerce poses a lot of questions for us

Hyderabad-based Red.Health, India’s leading ambulance service startup, is expanding into rapid emergency healthcare services. Red.Health already offers ambulances in less than 15 minutes in more than 20 cities, and is now testing eight-minute emergency check-up services in Hyderabad, scheduled to launch in mid-November.

“There is also a lot of interest from investors about this,” said Prabhdeep Singh, CEO of Red.Health.