Mayd Secures $15M Seed Funding for Rapid Medication Delivery in Berlin

Mayd Secures Funding to Expand Medicine Delivery Across Europe

Berlin-based Mayd has identified a significant opportunity to establish a medicine delivery service throughout Europe. The company’s strategy centers on collaborating with the numerous independent pharmacies common across the continent, and leverages the increased demand for rapid delivery services spurred by the recent pandemic.

Seed Funding and Expansion Plans

Founded earlier this year, the startup has successfully raised €13 million ($15 million) in seed funding. This investment, provided by 468 Capital, Earlybird, and Target Global, will be used to realize its vision of swiftly delivering medications to customers throughout Europe. Orders placed before midnight can be delivered within 30 minutes, with alternative delivery slots available starting at 8 a.m. the following day.

Navigating European Regulatory Landscape

The fragmented regulatory environment across Europe, characterized by varying per-country rules regarding prescriptions, presents a unique challenge. This complexity may explain why a dominant player hasn’t yet consolidated the market for medicine delivery.

A Distinct Approach to Pharmacy Services

According to Mayd co-founder Lukas Pieczonka, the European medicine delivery landscape differs considerably from that of the U.S. He explains that diverse regulations apply across European nations, including ongoing limitations on electronic prescriptions.

“Unlike many U.S. companies that operate as pharmacies with licenses in multiple states, we function as a platform connecting pharmacies and consumers,” he clarifies. “We will not operate as a pharmacy ourselves, but will collaborate closely with our pharmacy partners. This distinction is fundamental to our business model.”

Germany's Transition to E-Prescriptions

In Germany, where Mayd is initially launching, the country is preparing to implement a nationwide e-prescription system in January. This initiative is part of a broader effort to modernize healthcare services, including the introduction of electronic patient records.

Seed Funding Reflects Regulatory and Logistical Challenges

The substantial size of Mayd’s seed funding reflects the complexities of navigating per-country regulations, as well as the typical technological and logistical hurdles associated with scaling an urban logistics application.

Pharmacist Control and Delivery Infrastructure

“The regulations in Germany stipulate that the pharmacist must maintain control over the delivery process, which differs from standard delivery models,” Pieczonka explains. “We’ve developed an infrastructure that allows pharmacists to oversee which delivery personnel are handling each order. Furthermore, the system allows for immediate delivery stoppage if, for instance, an incorrect medication is packaged.”

“Moreover, our marketplace incorporates numerous regulatory requirements, setting us apart from typical food or general delivery services. A dedicated focus on this specific segment is crucial for establishing credibility with pharmacies.”

E-Prescription Integration and QR Codes

Starting next year, German citizens will receive digital prescriptions from their doctors, which they can then submit to a pharmacy for fulfillment, with associated health insurance claims automatically processed.

Integrating with pharmacy infrastructure for e-prescription delivery will necessitate the use of QR codes in Germany.

This means that delivering medications is not simply a matter of adding another item to the backpack of a gig economy delivery rider.

Timing and Growing Acceptance of Digital Healthcare

While launching such a model wasn’t previously impossible, Pieczonka believes the timing is now optimal. Growing digitization of healthcare services and increased consumer acceptance of app-based delivery and convenience, particularly following the pandemic, have created a favorable environment.

“We could have potentially launched this model two years ago. We initially questioned why no one was doing it in Germany, France, or other major European countries, and didn’t find a clear answer. However, we discovered that each country has specific regulatory nuances that must be addressed before successful operation.”

“Considering the widespread availability of instant delivery for groceries, food, and beverages, we recognized a need for similar convenience when it comes to medicine, especially for individuals who are unwell and prefer to avoid going out.”

Competition from Telehealth Platforms

Several telehealth platforms in Europe already offer private services that deliver prescription medications quickly following a virtual consultation with a physician, such as Sweden’s Kry.

However, Mayd contends that there is space for multiple models to facilitate medicine delivery to European consumers.

Integrated Solutions for Medicine Access

“Different approaches will emerge – some will allow you to send your prescription to a pharmacy for pickup, others will indicate which pharmacy has the medication in stock, and still others will identify the lowest price. However, we believe an integrated solution is necessary,” says Pieczonka.

Phased Launch and Initial Service Offering

Mayd is preparing for Germany’s implementation of e-prescription reimbursement next year by launching a service now, initially limited to delivering non-prescription items from partner pharmacies.

Currently, residents of Berlin can test the delivery service for non-prescription products like bandages or infant formula.

Specialized Platform for Pharmacy Needs

While on-demand delivery platforms like Spain’s Glovo offer “deliver anything” services, Mayd argues that a specialized platform tailored to pharmacies is essential given the complex and variable requirements surrounding prescription deliveries.

Future Service Capabilities

From January, Mayd will be able to process orders for prescription medications, connecting patients with pharmacies to fulfill their prescriptions. Its delivery staff, who are full-time employees rather than gig workers, will pack and deliver the medications, and pharmacists will provide advice to patients via phone or text message, based on their preference.

No prescription will be delivered without prior consultation with a pharmacist regarding proper usage and potential side effects, according to Pieczonka.

Geographic Expansion and Market Potential

Mayd’s service is launching in Berlin, where it currently has partnerships with approximately 30 pharmacies, with plans to expand coverage to the city’s outskirts.

Pieczonka also announced that Mayd will expand its service to other German cities this year, citing a total addressable market of €60 billion across the country.

The company’s ambitions extend beyond Germany, with plans for wider European expansion. While specific target markets have not yet been determined, Pieczonka is confident in the scalability of the model.

Scaling the Model Across Europe

“Our initial focus is on Germany, as it represents the largest market in Europe. Success here will pave the way for expansion into other countries. The broader trend of people having everything delivered to their doorstep suggests that there’s no reason why medicines shouldn’t be included,” he adds.

Mayd’s Business Model

In Germany, Mayd’s business model involves taking a commission from pharmacies on sales of non-prescription items and charging a delivery fee (or platform listing fee) for fulfilling e-prescription deliveries.

This report was updated with a correction regarding delivery hours, which are from 8 a.m. to midnight (12 a.m.), not 8 a.m. to 12 p.m. (noon).