Founded only one decade ago, GoodRX has grown to become one of the largest players in the online healthcare industry. The GoodRX business model is based on an app and a website that enables users to compare prescription prices at over 70,000 pharmacies throughout the United States, including names such as Walmart, Kroger, CVS Pharmacy, and Walgreens. It is estimated that the company has already helped its customers save more than $20 billion in drugs.
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As mentioned above, GoodRx was founded in 2011, by Doug Hirsch, Trevor Bezdek (who both currently act as co-CEOs), and Scott Marlette, in Santa Monica, California.
Bezdek had founded two firms before GoodRx. The first one did not take off, but the second one became one of the largest IT service providers in California and was sold in 2007. Hirsch and Marlette met at Facebook — Hirsch as VP of Product and Marlette as an engineer.
Hirsch had also worked in leading roles at Yahoo previously. And he left Facebook to launch DailyStrength, a health-focused social network, which later was acquired by HSW International.
The idea for GoodRx arose when Hirsch had to buy some prescriptions from his dermatologist and noticed that there were some significant discrepancies in pricing among different pharmacies.
He, then, convinced the other two founders to join him in the enterprise and, after more than a year of full-time work, GoodRx was launched at the Health 2.0 Conference in San Francisco, already listing over one million prices for 2,000 different drugs.
Over the coming years, GoodRx would call the attention of both users and investors, and, by 2018, it hit unicorn status. The next year, it acquired the provider of online medical services HeyDoctor, and, some months later, the company started offering telehealth and COVID-19 testing marketplace.
The firm went public in 2020, and the IPO granted over $1 billion to each founder. The company has also made some important acquisitions, like HealthiNation and RxSaver, and, nowadays, its platform is regularly accessed by over 18 million users every month.
As mentioned, nowadays, the same founders still hold the position of CEO in the company, with Trevor Bezdek and Doug Hirsch sharing the occupation of Co-CEOs of GoodRX.
To help Americans get the healthcare they need at a price they can afford.
The biggest revenue stream of GoodRx (approximately 90%) is the coupons the buyers apply when they fill in a prescription. The coupons are codes, accepted at over 70,000 pharmacies in America:
GoodRx was the premium subscription the company launched in 2017. For a monthly fee, users get discounts on over 1,000 prescription drugs and healthcare services. Individuals may subscribe at $5.99 per month. Families (up to 5) can subscribe for $9.99 a month.
There is also the Kroger Rx Savings Club powered by GoodRx, a partnership between GoodRx and Kroger, with an annual-fee plan of $36 for individuals and $72 for families (up to six), that offers lower prescription prices at Kroger pharmacies.
GoodRx offers both its own medical checks (through HeyDoctor) and a marketplace for third-party medical services. HeyDoctor allows users to connect with doctors that are vetted by GoodRx, who provide various medical services. Visits start at $19 and do not require insurance. The marketplace enables medical professionals to offer their services on its platform. In this case, GoodRx business model revenue is based on commissions.
GoodRx partners up with pharmaceutical companies to advertise their solutions (such as co-pay cards or patient assistance programs) on the platform while offering discounts to users. The company usually charges a fee in exchange for exposure during an agreed period of time.
Let’s take a look at the GoodRx Business Model Canvas below:
GoodRx’s customer segments consist of:
GoodRx’s value propositions consist of:
GoodRx’s channels consist of:
GoodRx’s customer relationships consist of:
GoodRx’s revenue streams consist of:
GoodRx’s key resources consist of:
GoodRx’s key activities consist of:
GoodRx’s key partners consist of:
GoodRx’s cost structure consists of:
Below, there is a detailed swot analysis of GoodRx:
GoodRx, born from a negative experience of one of its founders, has grown to become a giant business in its industry. And, more than that, to be recognized as a helpful brand, able to bring convenience, and money and time savings for its consumers.
Those benefits for the users quickly turned out to bring revenues that prove how profitable GoodRx business model is, with an amount of over $550 million only in 2020.
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