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

Avantika Shergil By Avantika Shergil  |  Jun 21, 2023  |  Delivery App Healthcare
Tata 1mg Business Model

An on-demand medicine delivery application such as Tata 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 Tata 1mg 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.

What is Tata 1mg?

Tata 1mg is a leading online pharmacy and healthcare platform in India. It allows users to order medicines, book lab tests, consult doctors, and access health information from their smartphones. In Money Control’s words, “Tata 1mg’s revenue from operations in FY21 stood at Rs 134.04 crore and its other income for the financial year ended March 31, 2021, was Rs 24.14 crore.

Tata 1mg offers a wide range of products and services at affordable prices and with convenient delivery options. Users can also get cashback and discounts on their orders by using the 1mg app. 1mg aims to provide quality healthcare for everyone at their fingertips.

Why is Online Drug and Medicine Delivery a Profitable Business?

Custom healthcare app development has never let its investors down. A prime example is the medicine delivery apps that are gaining traction across the world and in the US. Such apps offer convenience, affordability, and accessibility to customers who need a prescription or over-the-counter medication.

Medicine delivery apps allow customers to order tablets, syrups, and other medicine and medicinal drugs online from local pharmacies or licensed retailers and get them delivered to their doorstep in a timely manner.

Look at the inspiring statistics from the research giant Statista as they are mentioned:

  • Revenue in the Online Pharmacy segment is projected to reach US$31.64bn in 2023.
  • Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 13.40%, resulting in a projected market volume of US$52.33bn by 2027.
  • User penetration will be 21.65% in 2023 and is expected to hit 29.04% by 2027.
  • The average revenue per user (ARPU) is expected to amount to US$19.03.
  • In global comparison, most revenue will be generated in China (US$8,447.00m in 2023).

Thus, it is not an overstatement to say that online medicine delivery is the most profitable business because it offers several advantages over traditional pharmacies.

Some of these advantages are:

Convenience: Customers can order medicines from anywhere and anytime, without having to visit a physical store or wait in long queues.

Cost-effectiveness: Online medicine delivery can reduce the operational costs of running a pharmacy, such as rent, staff, inventory, etc. These savings can be passed on to the customers in the form of lower prices or discounts.

Variety: Online medicine delivery can offer a wider range of products and services than a local pharmacy, such as prescription drugs, over-the-counter medicines, health supplements, personal care items, etc. Customers can also compare prices and reviews of different products and vendors online.

Privacy: Online medicine delivery can protect the privacy and confidentiality of customers who may not feel comfortable buying certain medicines or products in public. Customers can also access online consultations and prescriptions from licensed doctors and pharmacists without disclosing their identity or medical history.

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 investments 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.

Tata 1mg App 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 time demanded, they were available as a complete healthcare mobile app.

How Does 1mg Work? The Process of Each of its Services

1mg is a mobile app that helps you access healthcare services from your mobile devices such as smartphone. You can use 1mg to order medicines, book lab tests, consult doctors online, and get healthcare information.

How does 1mg work

Here is how the Tata 1mg app works:

Primary step: First, a user needs to download and install the 1mg app from the Google Play Store or the Apple App Store. The user can also visit the 1mg website on their browser.

Account: Next, the user needs to create an account on 1mg using their phone number or email address. They can also sign in with their Google or Facebook accounts.

Use the app: Then, the user can start using the app to order medicines, book lab tests, consult professional doctors online, and get health information; also, it is possible to search for the products or services needed, or browse through the categories and offers on the Tata 1mg app.

Ordering goods: To order medicines, the user needs to upload a valid prescription from a registered medical practitioner. They can also scan the QR code on a prescription to upload it. It is also possible to choose from a wide range of medicines and health products at discounted prices. Users can also get free home delivery and cashback on their orders.

Lab tests: To book lab tests, the user needs to select the tests from the list of available tests and packages. They can also enter symptoms or conditions to get recommendations for the tests. There are over 3000 certified labs across India to choose from; one can also get free sample collection from their home and online reports on the Tata 1mg mobile application.

Seeing doctors: To consult doctors online, patients need to select the specialty and the doctor they want to consult from the list of verified doctors on the app. It is also possible to enter symptoms or conditions to get recommendations for the doctors needed. There are over 20+ specialties and 3000+ doctors across India to choose from; patients can get free follow-ups and prescriptions on their Tata 1 mg app, India’s best online pharmacy.

Health information: To get health information, users can access the health library on the Tata 1 mg app which contains articles, videos, podcasts, and quizzes on various health topics. Users can also read the health tips and news on it that are curated by experts and updated regularly. Plus, it is also possible to join the health community on the app which allows users to interact with other people and health experts on various health issues.

How Does Tata 1mg Take an Order?

Today, Tata 1mg is a prominent on-demand medicine delivery application that offers to order 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 makes the Tata 1mg app 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. Applications built for any healthcare category require the keen expertise of developers and designers. Medical app developers are those special ones who have hands-on experience with building healthcare apps and they have cognizance of a patient and doctor-oriented user interface and user-experience approaches.

Being a highly user-centric healthcare app, 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.

Soon after its establishment and especially after the Covid pandemic, Tata 1mg witnessed a skyrocketing growth in its popularity and app business model. The app reported millions of downloads throughout the world.

Tata 1mg Marketing Strategies

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

Another reason for the Tata 1mg app’s success is its profile management system which enables users to store and manage their personal and medical details, such as prescriptions, reports, allergies, health conditions, and preferences. The pharmaceutical delivery app also provides users with personalized recommendations and reminders based on their profiles.

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.

UI/UX at its Best

One of the reasons why the online medicine delivery business model of Tata 1mg app is successful is its user-friendly and intuitive user interface (UI). It allows users to easily navigate through different features such as ordering medicines, booking lab tests, consulting doctors, and accessing health information.

The medicine delivery mobile app also has a simple and smooth flow that guides users through each step of their transactions, from selecting products or services to making payments and tracking deliveries.

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 sold 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.

Filters

An online pharmacy center such as Tata 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 particular medicine and healthcare products 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. Tata 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.

How Does the 1mg App Make Profits?

The Tata 1mg core business has expanded over the 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. Tata 1mg is one of the leading online healthcare platforms in India, offering a range of services such as medicine supply, healthcare products, lab tests, online pharmacy, online doctor consultations, diagnosis, and health information. But what is the 1mgmobile application business model?

Here are a few monetization strategies of the Tata 1mg on-demand pharmacy delivery application –

How Does the 1mg App Make Profits

Commission Fees

One of the main sources of income for Tata 1mg is charging a commission fee from its partner pharmacies and labs. 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. Whenever a user orders medicines or books a lab test through 1mg mobile app of Tata, the platform gets a percentage of the transaction value as a fee. This fee varies depending on the type and size of the order, but it is usually around 15-20%. This way, Tata 1mg earns money by facilitating the delivery of healthcare products and services to its customers.

Ad Spaces

Another way that the online pharmacy app Tata 1mg makes money is by selling ad space to healthcare brands and providers. It has a large and engaged user base that visits its website and mobile app regularly to access health information, tips, and articles. This makes it an attractive platform for advertisers who want to reach out to potential customers and promote their products and services. Tata 1mg charges advertisers based on the number of impressions or clicks that their ads generate on its platform.

Premium Subscriptions

A third revenue stream for Tata 1mg is offering premium subscriptions for personalized health advice and discounts. The on-demand medicine delivery application has a feature called 1mg Care Plan, which allows users to pay a monthly or annual fee and get access to exclusive benefits such as unlimited free doctor consultations online, free home sample collection for lab tests, extra discounts on medicines and tests, and priority customer support. This subscription model helps 1mg retain its loyal customers and generate recurring revenue.

Data and Analytic Services

A fourth type of 1mg revenue model is by providing data analytics and insights to healthcare stakeholders. The online healthcare platform has a vast amount of data on its users’ health behavior, preferences, needs, and outcomes. This data can be used to generate valuable insights for pharmaceutical companies, insurance providers, hospitals, doctors, and policymakers. These buyers use data to understand the market trends, customer segments, gaps, and opportunities in the healthcare sector. 1mg can monetize this data by selling reports, dashboards, or consulting services to these stakeholders.

Featured Listing

Tata 1mg’s business model includes a featured listing of pharmacies and even medicines. Those who want to build an app like Tata 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.

Commercials

Tata 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.

These are some of the revenue-generating models that Tata 1mg makes profits and generates income from its online healthcare platform. By diversifying its revenue streams and leveraging its data assets, Tata 1mg has been able to grow its business and provide affordable and accessible healthcare solutions to millions of Indians.

What are the Tata 1mg Benefits?

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

Tata 1mg benefits users

  • Online pharmacy apps like Tata 1mg and Rite-Aid for online medicine delivery services save a lot of time and effort because users don’t need to go past to pillars to find their medicines.
  • Tata 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 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 Tata1mg 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.

Tata 1mg benefits to Pharmacy

  • Marked increase in sales because online pharmacies registered on Tata 1mg would get clients from not just surroundings but also from distances.
  • Tata 1mg e-pharmacy delivery business offer chemists and druggists to have healthcare partnerships wherein it can build and offer various healthcare plans to their clients. This, in turn, helps increase sales.
  • Tata 1mg is an online medicine ordering and delivery application that 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.
  • Offering discounts and offers through coupon codes and gift cards play a major role in the pharmacy delivery industry. Medicine delivery apps like 1mg offers such customization to druggists and chemists.

Pharmacies can contact  healthcare app developers to create custom app for their business.

Start a Business of Delivering Medicines Online Now

The digital consumer healthcare platform such as Tata 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, Tata 1mg’s business model has benefited every stakeholder in one or the other way.

Also, Tata 1mg is the best online pharmacy business model and successful online medicine delivery app that makes a profit by providing convenience, affordability, and quality to its customers. It leverages its network of pharmacies, doctors, and labs to offer a wide range of services and products. It also uses data analytics and Artificial Intelligence (AI) to optimize its operations and marketing.

By venturing into the online medicine delivery app business, you can tap into a growing and lucrative market that has a lot of potential for innovation and social impact. You can learn from Tata 1mg’s business strategies and challenges and create your own unique value proposition that meets the needs and expectations of your target audience.

If you want to start a business to deliver medicines online then you need to contact top mobile app development companies to build an app like Tata 1mg healthcare solutions. Discuss your business objectives, work on feasibilities, and get your project started.

Avantika Shergil Avantika Shergil   |  Jun 21, 2023

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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