It may seem far-fetched to use flying drones to deliver online purchases to your front door. However, Amazon is pursuing to make it a reality. Same-day delivery has become a viable option for online retail growth and all types of retailers are abroad, even Ace Hardware is testing the service. Drone use is another way that Amazon has tested and finds it fits their business model. A new announcement by Amazon shows it is another step closer to the floration of drone delivery.
Bloomberg News recently reported that Amazon has received approval by the Federal Aviation Administration (FAA) for launching its’ same-day delivery drone program. The FAA has given the retailer a waiver allowing flights as fast as 100 mph and 400 feet off the ground, according to a letter posted on Amazon’s site. Amazon vice president Paul Misener spoke to Congress, stating that an earlier FAA approval for using drones applied to an earlier drone model no longer used. Therefore, it isn’t beneficial for new drone implementation. With the new approval, Amazon appears to have high hopes that same-day delivery drones will be flying soon.
Last year, Amazon CEO Jeff Bezos made it known on 60 Minutes that the retailer had plans to launch Prime Air via “octocopters” or same-day delivery drones. Shoppers would receive their online items within thirty minutes or less. 86% of Amazon’s orders are small package items and actually meet the drone delivery criteria. It makes sense for Amazon to be so adiment about implementing same-day drones. With the enormous amount of distribution centers the retailer has across the US, the drones will bridge the distance gap like no other online retailer is doing thus far. It would indeed be revolutionary, as more than likely, other retailers will follow.
The FAA approval appears to not have come at a more pivotal time. Amazon strategically launched same-day delivery in several major US cities right before the holiday season last year, including New York City, Washington DC, Philadelphia, Dallas, Indianapolis, and Atlanta. In addition, the service was released in Miami and Baltimore in March. There will probably be more same-day delivery in other US cities to come this year. Amazon could be headed towards these same cities being the first for drone use.
Amazon’s Prime members already have Prime Now, the e-retailer’s one-hour delivery service, at their disposal. Prime Now one-hour delivery is $7.99 and two-hour delivery is free, although Prime Air is set to be much faster. Members have tens of thousands of products they can buy online, from household items to electronics. Most of these are small items also, which will meet the drone carrying requirements.
A number of retailers won’t be able to deliver via drones due to costs; however, they can partner with a same-day courier like 1-800Courier to compete online and also for easy implementation in major US cities. The New York courier has a nationwide footprint and can create logistical same-day solutions as well. Either way, most retailers are going to need same-day delivery to meet today’s online demand.
Reference: 4.10.15, Internet Retailer, Bloomberg News, Amazon’s delivery drone test plan gets new OK from FAA