Since late 2013, Amazon has been launching a distribution network of delivery stations. These delivery stations are positioned within larger metropolitan cities across the country. The delivery stations’ primary role is to sort packages for outbound routes to enable last-mile delivery to customers within a tightly defined urban area. Multiple local courier companies contracted by Amazon and independent Amazon Flex drivers have often performed last-mile delivery services. These deliveries may consist of multi-temperature fresh food being delivered on a same-day basis to markets where AmazonFresh is up and running.

The expansion of Amazon’s last-mile delivery service threatens traditional drugstores. This case aims at teaching students to evaluate the impact of Amazon’s last-mile delivery service on a medium-sized pharmacy chain in NYC and Long Island, and what the pharmacy can do to respond to Amazon’s future expansion in the Long Island region.