6 2 25

My Network Jobs Messaging Notifications Me For Business Prem

Home

Prismetric TechBytes
The digital digest for cutting-edge technology insights & latest
industry updates for entrepreneurs.
Weekly newsletter

1,801 subscribers Subscribe

Tata 1mg Business

Model – The Secret is
Out
Prismetric Technologies Pvt Ltd
Following
4,691 followers

January 19, 2024

Open Immersive Reader

Ordering things and shopping for a needle to gadgets

worth hundreds of thousands of dollars have become a
new norm. ordering medicines online is not only
convenient but also safe because most online medicine
delivery apps provide genuine brand assurance in their
products. Statista quotes that the online pharmacy market
is projected to cross the mark of USD 50 billion in 2024
showing an annual growth rate (CAGR 2024-28) of a
whopping 11.57% stretching the figure further to a market
volume of more than USD 80 billion by 2028.

There are many big shots in the online medicine delivery

app businesses, Tata’s 1mg being one of the frontrunners.
Tata 1mg business model has been an epitome for those
who want to venture into some sort of innovative mobile
app business ideas. Here, in this comprehensive guide, we
will try to reveal the secret of the 1mg business model by
Tata, an Indian giant conglomerate.

Here are some of the impressive stats that reflect Tata 1mg
business model’s successful strategies and mechanisms:

According to the Economic Times, Tata 1mg had

reported a gigantic 160% jump in revenue reaching
INR 1627 crores out of which 80% accounted only for
online medicine selling.

Tata 1mg received online orders and successfully

delivered medicines worth INR 1290 crores,
according to Entrackr.

Recently, in September 2023, Tata 1mg held more

than 31% of market share which was up from 19%
in the previous years, according to Business
Standards.

Tata 1mg’s business model shot the app to its fame leaving
other mammoth and corporate giants such as Reliance-
Netmeds, Flipkart Health Plus, and Apollo. So what makes
the business model of Tata 1mg unique and invincible?
Here is the cat out of the bag –

How does the 1mg business model work?

If you can shop for clothes, gadgets, machines,

automobiles, and almost everything on the Internet, why
not medicines, cosmetics, and other healthcare products?
This simple question tickled Tata’s think tanks who worked
on and leveraged the ongoing pandemic ‘no-touch’
shopping norms to launch one of the biggest online
medicine delivery platforms.

Think Tata 1mg app as an eCommerce store selling

pharmaceuticals and other healthcare products. While it
offers many other healthcare and wellness services, its
primary goal is to deliver medicines to the doorsteps of the
customers. It works in a simple flow –

Step 1:

Users open the Tata 1mg online medicine delivery app &
Login into the Account

Step 2:

An attractive UI is presented with a simple option to search

the required medicines or products
Step 3:

The needed products or drugs are added to the shopping

cart

Step 4:

The online secure payment gateway is displayed. Multiple

options to pay online are made available to users

Step 5:

The order is placed by users and the app immediately finds

the nearest pharmacy that is partnered with 1mg.

Step 6:

The pharmacy views the order and confirms it. Meanwhile

the nearest delivery partner is informed about the order’s
origin and destination.

Step 7:

The pharmacist rechecks the order and packs the medicines

or products securely. The packet is then handed over to the
delivery partner.

Step 8:

The delivery partner checks the shortest and fastest route

to reach the buyer’s doorstep to deliver the items.
Meanwhile, the buyer can track the parcel in real-time and
knows the ETD (Estimated Time for Delivery).

You can build medicine delivery app solutions using the

same flow i.e., keeping it simple to navigate and easy to
access. Once the flow is blueprinted, you can then work on
the business model with the help of your app’s features and
functionalities. It is worth that you convey your business
model to developers to customize your application so that
the features integrated are aligned with business objectives.
Let’s now check on how Tata 1mg registers immense
growth in the online pharmacy market.

How does 1mg make money?

The 1mg app makes healthcare accessible, affordable, and

convenient for all users. The business model of Tata 1mg
builds various sources for an easy cash flow and assures
that if one source faces an issue of slowdown, another one
would easily compensate. It is essential to learn these
models if you want to integrate these models into your
product but you should mind that each of these models or
features you include in your product will ask you for some
extra bucks.

Healthcare Products

The 1mg app sells myriad health and wellness products

including supplements and personal grooming items along
with medical devices and ayurvedic products. The app also
houses a range of products from different brands and
categories. The business model of the 1mg app puts a
margin on each product sold through the platform.

Lab and Diagnostic Tests

As stated earlier, Tata 1mg is beyond selling medicines;

it offers an option to book laboratory tests and
diagnostic services within its partner network. The
application offers
several tests and services including blood and urine tests, x-
rays/ultrasounds along with tests of MRIs and CT scans.
Users can opt for certain tests by ordering sample
collection at home and avail of free reports delivery/online
reports. The company charges some commission from the
labs for each booking made on the app ranging from 10-
40% depending on the tests.

Telemedicine

The 1mg business model also includes the services of

telemedicine wherein patients can consult with doctors and
specialists through audio/visual medium, voice, or chat. The
company has a tie-up with over 20,000 verified doctors
from almost all specialties such as cardiology, ENT,
pediatrics, and so on. Doctors can also view uploaded
prescriptions, medical reports, and health records. The 1mg
Tata app charges some fees from the users for each
consultation. Additionally, the app pays a part of the fees to
the partner doctors ranging from 50-80% depending on
the doctor's seniority or ratings. Out of the other features,
telemedicine is a complex entity and integrating it in your
product shall cost you higher than usual. It is
recommended that you go through a comprehensive guide
on telemedicine app development cost before planning to
have it in the app.

Online Medicine Order Delivery

The main function of the 1mg app is online medicine
delivery. Users can order any medicine from the app’s
network of partner pharmacies. The application houses a
database of over one hundred thousand medicines from
popular brands. The application also helps users with
unique features like timely medicine reminders, drug
substitutes, drug interactions, and molecule information.
The app earns a commission from partnered pharmacies for
every online order. It varies between 15-25% based on the
order value and the location of medicine delivery.

Consultation of Healthcare Providers

The business model of the 1mg app also draws revenue

from the consultation of healthcare providers. The app
connects users with renowned healthcare providers like
nutritionists, alternative medicine specialists, physio and
psychotherapists, and homeopaths. Users can also avail of
important features such as chat support and progress
tracking plus a feedback system. For revenue, the app
charges a fee from the users for each consultation that
happens on the platform. Again, the app pays some part of
its fees to the providers somewhere between 50-80%.

Healthcare Partnerships

No business model thrives without partnerships. The 1mg

app, too, partners with several healthcare setups like
corporate hospitals, clinics, insurance providers, and
corporates. The application offers access to its huge user
base and services, and it earns a fee from the partners for
each referral or service.

Subscription-based Care Plans

Tata 1mg business model also includes the option to

subscribe to a variety of healthcare plans that are
personalized for health guidance and medicine discounts.
The app offers different types of plans for different user
categories. The app earns from a monthly or annual fee
charged to users for each plan they subscribe to:

chronic care plans for users with chronic conditions

wellness plans for users who want to improve their

overall health

family plans for users who want to cover their family

members

senior plan for users who are above 60 years of age

Marketing strategies to support Tata 1mg
business models

Tata 1mg business model became successful due to a

comprehensive approach by the company. Tata designed
multidimensional approaches to revenues, features, and
facilities on its 1mg application so that collectively they
achieve the company’s vision and mission of making huge
profits despite terrific competition in the on-demand
delivery business market. To support its business models,
Tata 1mg has implemented various marketing strategies:

Referral programs

Tata 1mg encourages its users to refer their acquaintances

to the app. By doing this, they are rewarded with cashback
and coupons, or free consultations. This business model
helps the app increase its user base and retention rate.

Promotions and Discounts

Another marketing plan that supports the Tata 1mg

business model is regular promotions and discounts on
healthcare/wellness products and services. The app offers
flat 20% off on medicines up to 50% off on laboratory tests,
and also free consultations which helps the platform attract
new customers and increase the sales.

Grandmaster Series Campaign

Tata 1mg drew everybody’s attention by launching a

series of online events that featured popular doctors,
healthcare experts, and celebrities sharing their insights
and tips on
various health and wellness subjects including diabetes,
mental health, and fitness/nutrition. Tata 1mg raised
brand awareness and credibility through this.

Franchise Business

The business model of Tata 1mg also includes partnerships

with local pharmacies and diagnostic centers. It helps the
online medicine delivery company expand its offline
presence and customer reach. Also, there is a remarkable
improvement in faster and more convenient service to the
app users and an increase in the revenue streams.

Start an online medicine-delivering business

now

Reporting excellent revenue figures from the past couple of

years, the Tata 1mg business app model proves that
the future of healthcare with mobile technology is
lucrative and promising for years to come. Since now you
know the alpha and omega of how Tata 1mg medicine
delivery business works through its strategic models, it is
high time that you build your own app and offer an online
pharmacy delivery.

Get the top healthcare app development company on

board to build a customized medicine delivery software
solution adopting the business models of Tata 1mg
and
taking inspiration from the app’s features and facilities to
integrate into your product for faster ROI.

Report this

Published by

Prismetric Technologies Pvt Ltd

4,690 followers Following
Published • 3w

🚀 Exciting journey into the heart of Tata 1mg's Business Model! 💡 Discover how
they're reshaping healthcare through innovation and digital transformation.
#Tata1mg #BusinessInnovation #healthtechinnovation #healthcarebusiness

Like Comment Share 7

Reactions

0 Comments

Add a comment…

Prismetric TechBytes
The digital digest for cutting-edge technology insights & latest industry updates for
entrepreneurs.
1,801 subscribers

Subscribe