Rite aid fits into Amazon very neatly for a number of reasons.
Number one: they pick up Envision RX. Envision could immediately serve all of the Amazon employees who need prescriptions. Then you roll it out to the 82 million Amazon prime subscribers. The next step is already in place and that's the network of insurance carriers that Envision already services. They have millions of patients already receiving services from this Rite Aid company.
Number two: you integrate the pharmacy into all of the whole foods market stores. Having rite aid makes that easy.
Number three: you put Amazon go markets into all rite aid locations. They have been testing Amazon go and this would be a great fit into existing store. Perhaps that would also be like a whole foods mini store since whole foods is limited in the markets they currently serve.
You can bet that Jeff basos and his team have been paying attention to all the issues going on at Rite Aid. If they truly want to enter the pharmacy business they will make a quick offer in the near future before the Walgreens deal could ever close.
Walgreens is hoping to walk away quickly with the stores but you can bet that whether it's Amazon or a private equity group there will be other bidders to pick up some of the pieces of Rite Aid if not the entire company.
Walgreens blew the deal in June when they panicked that there was a potential the FTC could block the entire merger. As it turns out it looks like the deal was going to go through. I hope long term for the shareholders we get some great value for the assets. Personally I would love to see Amazon come in and buy the company.
For the record I have owned Walgreen stock for over eight years. I also have a very heavy position in right aid. The position is only about nine months old.
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