NowRx, an app-based drugstore delivery company based in Mountain View, Calif., Has raised $ 2 million in seed funding. The startup, which has been around for a little over a year, plans to use the capital to expand its customer base.
The NowRx app, which works with all major insurance plans, essentially functions as an on-demand drug delivery service. The app allows people to upload a photo of their paper prescription, pay their copayments, have a video visit with a pharmacist, and schedule delivery to a location of their choice. If people prefer not to use the app, NowRx also offers the option to do the whole process over the phone. On the doctor’s side, he has access to an analysis platform where he can follow the status of the prescription, insurance approvals and delivery confirmation.
âFree same day delivery provides a dramatically better customer experience and is only available at a pharmacy on demand. Large drugstore chains are reluctant to offer free shipping because of the essential incentive to attract customers to their physical stores so that they can sell them on all other products in the store, âsaid the CEO of NowRx, Cary Breese, in a statement. âBy operating in highly automated, low overhead warehouses, NowRx will be able to achieve operating margins equal to or greater than those of the largest players in the industry and, in fact, we expect profitability later this year. . “
The pharmacy apps arena is a bit crowded these days (and well funded), but almost every company that offers a digital version of the ordering, refilling and delivery service is doing things a little differently. In the case of NowRx, that means very low operating costs and, for now at least, serving a relatively small market. Currently, the company only ships to customers in the San Francisco Peninsula, but reports that more than 3,000 people are using the app with 10% month-over-month growth.
âOur very low fixed overhead and small infrastructure footprint allow NowRx to create an innovative mix of ‘offline’ and ‘online’ capabilities, in other words a combination of small storefront and mobile app, which is optimal for this industry and a model that is highly scalable, âsaid Breese.
The reason pharmaceutical applications attract physicians, payers, and investors is because of their potential to alleviate the exorbitant costs associated with medication nonadherence. Not only do millions of people not take all of their medications, many don’t even take them. NowRx cited a figure of over 100 million missed prescriptions each year for a number of reasons, including the fundamental inconvenience of having to physically go to the pharmacy to collect them.
âMedication abuse is a major concern in the medical profession, and it is not unusual for me to see about a third of patients not taking their prescriptions,â said Dr Moshe Mendelson, who works at Silicon Valley Eye Physicians, in a statement provided. by NowRx. âWith its reminders and direct delivery to patients, it facilitates adherence and, therefore, promotes better health outcomes. I think the app is a great development because it adds a layer of buy-in for patients, especially those with chronic illnesses. It is also extremely practical. Today, when I give my patients the option to send prescriptions electronically to their local pharmacy or NowRx, 80% of them choose NowRx for convenience. “
The company currently operates from one warehouse in Mountain View and plans to open two more to expand its coverage in the San Francisco Bay Area. Additionally, NowRx strives to leverage its analytics platform to understand drug use patterns to identify opportunities for pharmacist and physician intervention and subsequent collaboration to offset the hundreds. billions of dollars in health costs associated with drug non-compliance.