[jhundal]

I think the large retail pharmacies definitely have the advantage here. They already do blister packs, which is not too far off from PillPack's solution. They can also provide other compliance solutions (eg. http://www.glowcaps.com/) that can relay information back to caregivers, among other things.

They would seem to have a few more hard to replicate advantages, a couple off the top of my head: It is probably easier for them to provide medications in form factors other than pills (eg. inhalers), and I would guess that most folks don't want two different sources for their drugs. If you happen to misplace your medication only a physical pharmacy is going to be able to cost effectively provide you medication on short notice.