The next big thing that quick commerce platforms have been eyeing is the delivery of medicines. Quick commerce platform Swiggy Instamart recently partnered with Pharmeasy for a pilot project to deliver medicines.
Experts highlight that there is uncertainty in India's e-pharmacy laws, as current regulations under the Drugs and Cosmetics Act, 1940, do not specifically address online medicine sales
The next big thing that quick commerce platforms have been eyeing is the delivery of medicines. Quick commerce platform Swiggy Instamart recently partnered with Pharmeasy for a pilot project to deliver medicines.
Reports indicate that since Swiggy is partnering with an e-pharmacy company for this delivery, it does not need regulatory approval. This comes at a time when over-the-counter (OTC) medicines such as pain sprays are already being sold by the food delivery giant.
As per Moneycontrol, this pilot project is available in Bengaluru, where fever medicines and pain relievers are being made available with prescriptions.
Other players are also joining the race to deliver medicines. Tata's 1 mg is reportedly tying up with BigBasket to deliver medicines in select cities in December. By January end, Big Basket aims to roll out medicine delivery in all cities, Hari Menon, co-founder and CEO, told Mint.
With the demand for speed increasing, media reports suggest that e-pharmacies such as Tata 1mg, PharmEasy, and Apollo 24/7 are also focusing on fast delivery.
However, challenges exist. Soon after media reported about Swiggy and Pharmeasy’s tie-up, the All India Organisation of Chemists and Druggists (AIOCD) wrote to the Drug Controller General of India (DCGI) and expressed concerns about this move.
The letter dated October 30 reportedly highlighted that the established regulatory framework in India is designed to ensure the safe and controlled distribution of medicines.
“Online pharmacy models, as they currently operate, frequently bypass these safeguards, particularly concerning prescription verification, patient identity checks, and mechanisms to prevent misuse,” the AIOCD reportedly added.
The association further added that a public interest litigation (PIL) is ongoing in the Delhi High Court, with the Central Government facing challenges in drafting rules for online pharmacies.
Speaking about the issue, Ankur Bisen, Senior Partner & Head - Consumer, Food & Retail, Technopak Advisors, told Outlook Business, “The concern is valid because we’re dealing with a controlled substance. In any case, the medical supply chain has existing issues, such as expired drugs and insufficient supervision.”
Opening up additional channels without strict regulation could exacerbate these challenges, particularly in an industry involving sensitive products like medication, added Bisen.
Echoing the same opinion, Dhairyashil Patil, President, All India Consumer Products Distributors Federation, said, “Questions arise around whether prescriptions will be adequately verified and whether medicines are being properly handled and distributed. The AIOCD has opposed such services since they could lead to the sale of non-prescription medicines without adequate oversight.”
Online delivery of medicines through channels like Apollo and Tata 1mg is not a new thing in India. Bisen believes that the concern is less about online sales and more about responsibility and quality control. “There needs to be enough diligence and regulatory measures in place to ensure only qualified sellers participate,” added Bisen.
However, some feel that the criticism mounted on the Quick Commerce platforms is not justified. Taking to social media platform LinkedIn, Indradeep Banerjee, an investor, wrote that the objections raised by AIOCD are not valid. He wrote, “I think its best to call a spade a spade and raise concerns on pharmacy business in Tier 1 cities if quick commerce starts delivering those in 10 minutes. That’s a valid concern and should be raised, but not this charade on pointless reasons for not allowing pharmacy on Quick Commerce.”
Another concern raised by the AIOCD is that the quality of medicines would be compromised as expired or counterfeit medications might be sold by platforms. This has been a concern that has been raised by the government as well. Following this, the Food Safety and Standards Authority of India (FSSAI) decided to meet representatives of quick commerce platforms, including Blinkit, Swiggy, Instamart, and Zepto, by November 16. The meeting will revolve around these platforms selling goods close to their expiry date, as per NDTV Profit.
On October 25, Outlook Business broke the news that the FSSAI might examine quick commerce and e-commerce platforms with regards to violations of the Food Safety and Standards Amendment Regulations 2020. The act highlights that sellers and platforms should list and deliver food items that have at least 45 days before they expire.
“Consumers are currently focused on pricing differences between online platforms and local stores, often overlooking product details that aren’t clearly displayed. This needs to change to ensure consumers have complete information, especially when comparing prices,” added Patil.
The AIOCD has also pointed out that this move conflicts with the standards outlined under the Drugs & Cosmetics Act of 1940. This act deals with the manufacturing, import, and distribution of drugs in India.
"Given the provisions of the Drugs and Cosmetics Act, 1940, the entry of non-pharmaceutical platforms into the medicine delivery space raises legitimate concerns around compliance and quality,” said Nilesh Tribhuvann, Managing Partner, White & Brief—Advocates & Solicitors.
With regards to laws dealing with e-pharmacies in India, experts have highlighted that there is heightened uncertainty in the space. This is because the current regulations under the Drugs and Cosmetics Act, 1940, and associated rules don’t explicitly cover online medicine sales.
“Although draft rules for e-pharmacies were proposed back in 2018 to establish licensing and operational requirements, these have yet to be finalized,” added Tribhuvann.
With quick commerce platforms seeping into every part of our lives, there is no doubt that they will venture into more products. For example, recently the platforms also decided to sell electronics goods. The race intensified when the platforms started selling iPhones in 10 minutes. As the market keeps growing with a market size of $2.8 billion as per Redseer Strategy Consultants, it becomes important to balance convenience with safety and accountability.