The Karnataka Pharma Retailers & Distributors Organization (KPRDO) has requested PhonePe to reconsider its decision to launch 24×7 medicine delivery through the PINCODE App in Bengaluru, Mumbai, and Pune. The organization highlighted concerns over conflict of interest, regulatory compliance, and potential impact on standalone pharmacy partners who have long supported the PhonePe UPI platform.

Key highlights

Conflict with partners

• PhonePe entering medicine delivery may compete with its own pharmacy partners, affecting their business and long-term partnerships.

• Retailers and wholesalers may explore alternative UPI options if the service continues.

Regulatory and safety concerns

• Medicine delivery involves complex regulatory compliance, particularly regarding Schedule H drugs, antibiotics, and habit-forming medicines.

• KPRDO highlighted the Delhi High Court interim injunction (WP(C)11711/2018 & CM APPL 45307/2018) restricting online medicine sales.

• Teleconsultation-driven prescriptions may be misused, leading to antimicrobial resistance and social issues.

Potential nationwide impact

• KPRDO warns that if PhonePe continues, opposition may spread to other states, affecting the app’s reputation and user base.

• Urges PhonePe to focus on financial services and support standalone pharmacy outlets instead of entering medicine delivery.

KPRDO emphasizes that online medicine delivery by non-pharmacy platforms is illegal under current regulations and poses risks to public health and partner relations. Pharmacists and pharmacy networks are watching PhonePe’s next steps closely, as the outcome could influence e-pharmacy operations and UPI partnerships nationwide.