E-commerce giant Amazon is getting ready to begin building out a portion of a 180,000-square-foot distribution center in the Dallas-Fort Worth region to serve as pharmacy fulfillment space as part of the company's national expansion plans to offer same-day delivery of medications to nearly half the country by next year.
The Seattle-based company identified Dallas in October as one of 20 markets it was targeting to open an Amazon Pharmacy in 2025, more than double the number of cities where customers can get same-day delivery of medications.
The pharmacies are expected to open at Amazon warehouses where it already offers same-day delivery, helping to expedite medication delivery to customers. Amazon officials said the company aims to help fill the care gaps caused by so-called "pharmacy deserts," by offering rapid delivery of medications and 24/7 access to a pharmacist so customers can get care within hours. The company's growth strategy relies on what it calls modular pharmacies of varying sizes embedded in large Amazon same-day delivery hubs to tap into Amazon's delivery network and logistics capabilities.
By integrating pharmacy shipments into the wider Amazon logistics network, officials said it will reduce delivery time and create opportunities to scale this part of its business rapidly. The pharmacy fulfillment sites are designed to be highly automated with robotic arms and other automation and overseen by licensed pharmacists and pharmacy technicians.
Dallas pharmacy
Amazon plans to begin construction on the build-out of the Dallas pharmacy at 3051 Research Drive in Richardson, Texas, a suburb just north of the Dallas city limits, in February, according to a state work permit. The construction is expected to cost at least $1.6 million and be completed by the end of April.
Amazon is also planning on opening pharmacies that offer same-day delivery in Boston, Minneapolis, Philadelphia, San Diego and other undisclosed markets next year.
"We haven’t announced additional cities and will do so as plans become firm," an Amazon Pharmacy spokesperson told CoStar News in an email. "Timing and details are still being determined, and delivery will be conducted by our standard vehicles," the spokesperson said.
Last year, Amazon started offering customers in College Station, Texas, the option of getting their medications from an Amazon Pharmacy in 60 minutes or less by drone delivery. The company uses next-gen technology, including generative artificial intelligence and machine learning, to help pharmacists fill prescriptions more quickly and accurately for the drone deliveries, Amazon officials said.
The Amazon Pharmacy same-day delivery service was introduced in New York and Los Angeles in March after launching in cities such as Indianapolis, Miami, Phoenix and Seattle.