A Love Letter to the Team, Customers, Doctors, and Partners Who Made Our 2018 Incredible
In 2018, we stepped closer to our mission of building a pharmacy that works for everyone — rebuilding the pharmacy industry from the inside out with an emotionally resonant experience, and technology that enables customized outcomes for doctors, hospitals, insurers, and manufacturers.
Over the course of the year, we grew our business in NYC more than 3.5x and prepared to expand to cities across the country in 2019.
At Capsule, we believe that everybody needs some looking after sometimes. We believe that the core pharmacy experience is broken. We believe that the industry average of only 50% of prescriptions filled is far too low. And we believe that the pharmacy should be the hub of healthcare — creating value for all stakeholders.
Through the combination of technology and people, we’ve built a truly delightful pharmacy experience while also fundamentally altering the economics of the pharmacy.
We are creating an enduring, enormous, and highly valuable business by solving these problems with people, process, and product designed to look after our customers, our doctors, our partners, and our teammates.
In 2018, our revenue increased more than 3.5x in New York City. We looked after tens of thousands of customers — making it effortless for them to manage their medication and creating the first true end-to-end digital pharmacy platform. We proved that our consumer advertising and doctor partnerships channels work better together than separately. And we partnered with doctors to deliver the future of pharmacy, with real-time feedback loops that enable better care than has ever been possible before.
We continued to expand our incredible team — growing from 75 to 250 full-time Capsules, and adding hundreds of couriers to deliver your medications by hand wherever and whenever you want them. We hired senior leaders with experience working for beloved consumer brands like Blue Apron, Jet, and Soulcycle, and for high growth healthcare innovators, like WebMD and Practice Fusion.
And we built trust and loyalty with our emotionally resonant experience. In 2018, we not only answered thousands of your questions about side effects and interactions — from “does this article apply to me?” to “what do I do after I miss a couple doses,” but we also taught you to pronounce hundreds of medication names — from Levothyroxine (LEE voe thye ROX een) to Spironolactone (spy RON oh lac tone).
It resonated. In 2018, our customers and doctors shared on Twitter that Capsule lets “them take back healthcare,” told us in the app store that we are “life changing” and on Yelp that we are “a lifesaver,” declared on Instagram that they are “in love” with us, proclaimed on Facebook that we are “absolutely perfect,” and reviewed us on Google as ”the future.”
Our frictionless experience allowed you to develop personal, trusted relationships with our pharmacists through asynchronous communication right from your phone. Blending technology and humans, we delivered the same type of care you would expect if your mom were your pharmacist. 95% of our customers told us that using Capsule is effortless.
We also pioneered the pharmacy as the hub of healthcare. In 2018, we partnered with doctors at New York’s largest hospital systems to build tools that enable their practices to drive personalized pharmacy outcomes for their patients and that enable caretakers to look after the most vulnerable New Yorkers at housing projects.
We have built a best-in-class pharmacy platform that knows more about your doctors than they know about themselves — we identify their preferences and prescribing habits to make sure that we are always able to get you the medication you need at the best price, delivered to you on the same-day as your visit.
Our proprietary rules engine and intelligent prescription processing power fill rates that are more than 50% higher than the industry average. And our smart refills mean we work with your doctor to make sure you will never miss a dose of your medication.
In 2018, our model enabled us to achieve unit-level profitability in our first market, New York City, allowing us to aggressively invest in our continued growth. By pioneering the Third Wave of digital commerce, we have transformed our pharmacists into super-pharmacists. This blend of technology and humans results in consistency and reliability that not only enable trust, but also fundamentally alter the economics of the pharmacy, allowing us to continue to invest in the technology and experience that make everyone love Capsule.
And lastly, in 2018, we raised an additional $50 million to continue to invest in growth. Alongside Thrive Capital, who has been our partner since day one, we partnered with Glade Brook Capital, who have backed global category-defining multilocal companies like Meituan, WeWork, Uber, and Airbnb.
We are energized by our growth in New York City, and as we enter 2019, we are excited to double down on our business here, while also preparing the people, product, and processes to expand Capsule to customers and partners everywhere.