1mg App business model: How does it work and make money

Avantika Shergil By Avantika Shergil  |  Jul 28, 2022  |  Healthcare Top Industries
How has 1mg pharmacy delivery app

An on-demand medicine delivery application such as 1mg has proved the old adage ‘health is wealth’ literally! The pharmacy delivery app has proved that it is an asset of the highest value on everyone’s smartphone. While pharmacy delivery services are many, the 1mg app business model has proved that with the features and approach it has, nothing can beat or even come close to its success. The reasons are many and we are going to dissect a few important ones that shall help you have a unique healthcare business idea.

How did an online drug delivery system lead the market?

The pandemic brought unprecedented consequences to the world and it forced the entire healthcare system to reform. People were keen to buy various healthcare plans and wellness companies started putting investment in various healthcare partnerships so as to provide flawless and quick services. While till then, entrepreneurs only thought about venturing into telemedicine app development for their business, the rise of 1mg brand and other digital consumer pharma platforms pushed many entrepreneurs to think about the medicine delivery business which was both lucrative and social help.

1mg – the e-pharmacy delivery business – what some industry experts name it, witnesses over 3 million visitors every month and there are millions of downloads on the major platforms. While 1 mg’s marketing journey started with merely online (digital) delivery of medicines and drugs, 1mg core business expanded to offline services such as health camps and other noble activities. This digital consumer healthcare platform works only with certified and registered drug dealers and pharmacies. They have a powerful network of qualified and experienced medical personnel who provide healthcare services to registered users.

1mg’s business model– tapping a perfect niche at a perfect time

The concept of ‘easy reach’ to medical services i.e., doctors and pharmacy itself was a brilliant healthcare business idea. Though it wasn’t new, 1mg tapped the market at the right time. Many healthcare startups needed a solid platform for collaboration and growth, which 1mg core business provided.

1mg understood the need for an online pharmacy center and online healthcare solutions to provide bespoke services that cover not only diagnosing the health ailment but also screening and medicines. 1mg dared to break a robust chain of doctors and chemists who had a strong hold over the market. Discounts weren’t possible due to the nexus and patients weren’t benefited, not an iota.

The 1mg healthcare solutions came as one of the breakthrough digital healthcare tools for everyone and it created a win-win situation for all. Everyone from the medical fraternity welcomed the digital transformation in healthcare; the physicians and surgeons were happy to shift to digital consumer healthcare platforms as for them getting technically advanced was a matter of pride and showcased their advancement to their patients. The pharmacy delivery business first showed its digital presence in 2015 with a portal, and soon 1mg website traffic reached its peak with hundreds of thousands of users visiting, and most importantly, retaining there. The bounce rate of the website gradually decreased as they started offering useful content and the most affordable healthcare services. Soon, as the time demanded, they were available as a complete healthcare mobile app.

How does 1mg take an order?

Today, 1mg is a prominent on-demand medicine delivery application that offers ordering medicines of all kinds with ease. The tablets, capsules, and syrups that are unavailable at nearby chemists and druggists can be easily found on the 1mg portal or pharmacy delivery app. Here is how the user can order their medicines on this wonderful online pharmacy center –

How does ordering work on the 1mg online pharmacy delivery app?

1mg order process

What made the 1mg app business successful?

If the 1mg healthcare business idea has worked wonderfully, it is the efforts and strategies behind it. The pharmacy delivery industry is huge and beating other players in this field is a hard nut to crack. When Tata 1mg e-pharmacy delivery business was thought, it was a bit new concept with no foolproof plan of success in records. Nevertheless, it is interesting to know about the 1mg marketing journey because that’s responsible for its roaring success.

Initially, when the 1mg online medicine ordering and delivery business was launched, it wasn’t accepted well by users because they were accustomed to buying goods online such as clothes, food, shoes, and groceries, but never medicines or drugs. The online drug delivery platform was quite new and considered riskier, but later, with regular updates and catering to the latest needs of clients and the market, the pharmacy delivery app managed to catch everybody’s eyeballs.

User-friendly features

Any app would depend on its UI/UX as the ultimate factor to make it successful or flop. Tata 1mg’s business has been always customer-centric and, therefore, this wonderful app has managed to gain popularity in the medicine delivery business. The user-friendly features have been the backbone of this pharmacy delivery app.

Easy registration and logins

The on-demand medicine delivery application offers easy registration and log-in through various ways including phone numbers and social media applications. Once logged in, the application and 1mg website offer you to stay logged in (with the help of browsers) for easy access and navigation of the portal.

Profile management

Once a user is successfully registered and logged in, the e-pharmacy delivery application offers profile management wherein the users can create and maintain their personal profiles. In addition, the owners of the application can also have a master administration dashboard and profile where they can manage and control several features and privileges.

Prescription upload

Medicine delivery application does not limit themselves to selling a few tablets, capsules, and syrups. Instead, they include a range of medicines so that they can fulfill all the orders from the customers. Nevertheless, certain drugs cannot be solved without prescriptions. Hence, online medicine ordering and delivery apps like 1mg have an option to upload prescriptions by doctors. Such documents are first verified before the medicines are dispatched by partner pharmacies.


An online pharmacy center such as 1mg offers useful filters to its users. The users can filter the medicines according to alphabetical order, drug categories, and even diseases. This wonderful feature can help users find and order a particular medicine quickly.

Ease of navigation

As mentioned in any standard healthcare app development guide, some advanced features of pharmacy delivery service applications would include a customized UI (user interface) where the users can select their dashboard items, and hence it will be easy for them to navigate the entire application or online e-pharmacy portal. 1mg’s core business comes from its smooth functionalities because users find it way easier to order medicines on the platform than going to a drug store physically or even ordering through the same store over a phone. Ordering the medicines has been never easier as it is ‘on the go’ with the 1mg medicine delivery platform.

Benefits to all

1mg app benefits

The biggest strength one could say in the business model of 1mg is its win-win offers to everyone who uses it. All the stakeholders of the 1mg medicine delivery app would get benefited from its carefully drafted model.

User benefits

  • Apps like 1mg and Rite-Aid for online medicine delivery services save a lot of time and effort because users don’t need to go post to pillars to find their medicines.
  • 1mg business model offers discounts and cashback that further help users save even more and get medicines for free at times. Such discounts always work on the e-commerce store.
  • Users can check the availability of the medicines and therefore can be sure of getting the order. On the other hand, an online medicine ordering and the delivery app doesn’t have any geographical boundaries and, therefore, one can get medicines even from a distance (nevertheless, it may cost them a bit more).
  • In a rare case, if the medicines are not available at the online pharmacy store, it gives you an option to ‘Notify Me’ when the medicines are available.
  • Many digital consumer healthcare platforms such as 1mg offer an option to consult doctors online. Even further, other pharmacy delivery services extend their features to include video calling from registered healthcare professionals to provide online consultancy.

Pharmacy benefits

  • Marked increase in sales because registered online pharmacies would get clients from not just surroundings but also from distances.
  • Many e-pharmacy delivery businesses offer chemists and druggists to have healthcare partnerships wherein they can build and offer various healthcare plans to their clients. This, in turn, helps increase sales.
  • Online medicine ordering and delivery applications may offer health tools and local store management i.e., pharmacists can update their stocks and hence, don’t require any manual intervention.
  • It is also possible that a model as in 1mg’s business offers customers to subscribe for regular medicines for a longer period. For instance, patients with hypertension (high blood pressure) and diabetes require medicines on a regular basis. Such customers play a major role in the pharmacy’s increased sales as a sure income.
  • Pharmacies can contact app developers or contact the company itself to add, remove, or edit features as per their business requirements. A customized medicine delivery app can help pharmacies tailor their offers according to their business models.
  • Offering discounts and offers through coupon codes and gift cards play a major role in the pharmacy delivery industry. Medicine delivery app like 1mg offers such customization to druggists and chemists.

How has the 1mg medicine delivery app monetized its on-demand medicine delivery?

The 1mg core business has expanded over years, and today, it is no longer just an e-pharmacy delivery business. The app has grown manifold; thanks to its foolproof planning and business strategies. Here are a few monetization strategies for the 1mg on-demand pharmacy delivery application –

Featured listing

The 1mg’s business model includes a featured listing of pharmacies and even medicines. Those who want to build an app like 1mg and succeed should consider feature listing as one of the primary income sources. The products with featured listings have additional and top visibility on the e-pharmacy delivery application. Any sponsored announcement, top listing, or pinned post is chargeable that the company that wants the promotion should pay to the digital consumer healthcare platform.

Commission revenue

Another popular 1-mg business model is a commission earning wherein the online drug delivery platform offers excellent reach and visibility to millions of its users. In return, the 1mg’s revenue has also come from some commission in accordance with rules and regulations set and approved by mutual agreement or contract.


1mg website traffic and mobile app users are in great number; hence, putting advertisements or commercials of all kinds can help the app owner with remarkable revenue. The advertisements are not restricted to e-pharmacies or local chemists and druggists; instead, the commercials can be offered as healthcare partnerships with various healthcare plans in all sectors including healthcare insurance and ambulances.

The possibilities of generating revenues through online drug delivery platforms such as 1mg are many. Tie-ups, associations, and partnerships with hospitals, individuals or teams of healthcare providers, and pharmaceutical companies are quite common yet fruitful.


The digital consumer healthcare platform such as 1mg has revolutionized the way online medicine ordering and delivery happens. It has equipped its users with the easiest form of medicine ordering action; on the other hand, 1mg’s business model has benefited every stakeholder in one or the other way. Indeed, more and more businesspersons have started contacting medical app development companies to build an app like 1mg healthcare solutions.

Avantika Shergil Avantika Shergil   |  Jul 28, 2022

An enthusiastic Operations Manager at TopDevelopers.co, coordinating and managing the technical and functional areas. She is an adventure lover, passionate traveler, an admirer of nature, who believes that a cup of coffee is the prime source to feel rejuvenated. Researching and writing about technology keeps her boosted and enhances her professional journeying.


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