Drone delivery

December 27, 2024

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Is Drone Hysteria an Ominous Sign for Drone Delivery’s Prospects?

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Mystery sightings of unidentified aircraft on the East Coast, primarily in New Jersey, have exposed and elevated public anxiety around drones, but experiments around home delivery via drones continue unabated.

Alphabet’s Wing announced last week that it was expanding its partnership with DoorDash to enable customers in Dallas-Fort Worth to receive drone delivery from 50 food establishments in the area. Traveling at a speed of 65 mph at a cruising height of about 150 feet, the drones can “deliver items and meals to doorsteps in as little as 15 minutes,” according to Wing.

The partnership expansion follows pilot programs in Melbourne, Australia, and Christiansburg, Virginia

Amazon Prime Air in early December announced that it had introduced its “most advanced” delivery drone in Phoenix’s Valley West district and College Station, Texas. The MK30 drone, carrying packages 5 pounds or less, travels two times farther and is “significantly quieter” than Amazon’s previous drones.

“It is the first drone we have developed from the ground up using a requirements-based process including more stringent requirements that will allow us to eventually reach a half billion customers annually,” explained Stephen Wells, chief project engineer for the Prime Air team. “We designed it with aerospace levels of reliability and redundancy.”

In late August, Fort Worth became the first major metropolitan U.S. city to offer commercial drone deliveries with packages first flying from nearby Walmart stores.

Walmart partner DroneUp confirmed in August to Axios that it was closing a combined 18 Walmart delivery hubs in Arizona, Utah, and Florida, leaving Walmart with 15 (11 in Dallas, three in Arkansas, and one in Virginia). The closures were attributed to challenges scaling expenses, with the average drone delivery costing about $30 versus a goal of below $7, a price similar to ground delivery but at a faster speed.

Walmart stressed that the reception from customers is favorable so far.

“We are excited about the momentum and positive customer response we’ve experienced around drone delivery,” Walmart at the time said in a statement to The Verge. “This service will continue to evolve as we learn more about customer preferences and drone capabilities. Our drone delivery program is still a pilot and by focusing our efforts in Dallas-Fort Worth, we can learn more about the potential to scale this innovative delivery option for Walmart’s customers.”

Consumer surveys have generally found people open to drone delivery due to the potential for faster delivery at lower prices.

A recent McKinsey survey of more than 3,000 consumers in six countries found that 76% are willing to switch to commercial drone deliveries from other delivery modes, representing a 19% increase from a prior survey in 2021. More than half (58%) are willing to pay a premium for drone deliveries compared to traditional delivery methods. Faster delivery was cited as the most attractive aspect of drone deliveries globally, a significant shift from the 2021 survey, when delivery cost was the top factor.

Regardless of the reception in other cases, the hundreds of suspected drone sightings over New Jersey, New York, and other Eastern states since mid-November have sparked anxiety, temporary FAA flight restrictions, calls for military intervention, and a heap of conspiracy theories. According to CBS News, 5,000 alleged sightings have been reported in just the last few weeks, though “only a hundred or so have generated actual law enforcement leads.”

The still-uncertain origin of the flying objects has also elicited calls for more regulation of drones not only due to concerns over security and safety but also privacy, with most privately owned drones resembling flying high-definition video cameras.

However, an engineering professor from George Mason University, Missy Cummings, noted that people are more likely seeing “aircraft, stars, or reflections off of objects, like towers.” She explained, “Of all of those options, drone is the least likely, because it’s actually pretty hard to pick these out of the sky.”

Reacting to drone delivery arriving in Fort Worth, Bo Mei, a professor of computer science at Texas Christian University, wrote in a university blog post that the use of low-resolution cameras for navigation purposes and not capturing live feeds or photographs are good steps toward ensuring privacy.

“The success of maintaining privacy also depends on how transparent the program is with the public and how responsive it is to any concerns that arise,” Mei wrote. “Public trust can be built through clear communication about how data is collected, stored and used.”

BrainTrust

"Recent events, while they do not justify hysteria, do not bode well for delivery by drone."
Avatar of Bob Amster

Bob Amster

Principal, Retail Technology Group


"Lots of hysteria about drones won’t impact drone delivery or the overall trend. Drone delivery is still at best, experimental. "
Avatar of Ananda Chakravarty

Ananda Chakravarty

Vice President, Research at IDC


"The current issues are not indicative of whether or not drones make sense for delivery, which is far more of a practical consideration."
Avatar of Brian Numainville

Brian Numainville

Principal, The Feedback Group


Recent Discussions

Discussion Questions

What does the widespread confusion and outrage over alleged drones menacing states in the Northeast say about the potential hurdles facing drone delivery?

Which concerns around drones heard lately do you see as the most challenging to overcome?

Poll

9 Comments
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Craig Sundstrom
Craig Sundstrom

It seems strange the Poll omitted (what is to me) the most obvious issue of all: drone delivery seldom makes any economic sense…unsupported claims of “cheaper” notwithstanding.

David Biernbaum

Drone hysteria does not correlate with drone sales. Furthermore, the hysteria is totally justified since neither the Biden administration, nor the military or FBI informs the affected citizens of the owners of the multiple drones or what their mission is.

The way this drone event has been handled (or not handled) cannot be excused. It’s hard to see how any responsible person in the administration could believe that silence is the best course of action.

Does our government know the answers to these questions? If not, why not? Are they aware of the answers but incapable of formulating a response? I find it hard to believe how poorly the administration is handling this scary enough issue.

But for all we know right now the future sales of drones still look very promising. 

Scott Norris
Scott Norris

Aviation folks figured it out right away and have been showing the evidence for weeks – the vast majority of instances weren’t drones at all but just the navigational & landing lights of aircraft coming in to (mostly) Newark. Yet local and national media kept whipping up nonsense and anxiety, and politicians were drawn to it like mosquitoes. One might as well ask “WHAT WILL THE GOVERNMENT DO ABOUT ALL THESE CONCERNING SASQUATCH REPORTS???”

Bob Amster

Recent events, while they do not justify hysteria, do not bode well for delivery by drone. It will come to pass that, similar to municipalities limiting the number of liquor permits issued, the FAA will issue a limited number of public permits to operate a single drone to businesses. This will limit the efficiency of retailers to operate drone delivery financially efficiently. We won’t be going back to the horse and cart, but delivery drones will not clutter the skies.

Adam Dumey
Adam Dumey
Reply to  Bob Amster

I agree with your position – the comparison between mysterious flying objects located around dense metropolitan areas and/or national security positions does not align with delivery drones.
That said, a more fun discussion could center around how markets will adjust to an increased delivery drone presence (which will happen, especially when final cost models solidify). History shows how we’ve consistently adapted our physical environment to accommodate new delivery methods – from mailboxes to mail slots in doors to package rooms in apartments, and even garage-based delivery systems. Does the next evolution include dedicated drone landing zones on properties or communal ‘drone ports’ in residential developments? I believe we are many years away from drones becoming commonplace (e.g. in 2018, I presented at an aerospace conference where a leading transportation vendor declared drones would be the defacto deliver vehicle by 2024 and that passenger transport would occupy 25% of the market by 2025 – neither are close to materializing); however, is it valuable to shift the discussion beyond regulatory requirements onto the physical enhancements that might come with the growth of drone applications?

Ananda Chakravarty
Ananda Chakravarty

Lots of hysteria about drones won’t impact drone delivery or the overall trend. Drone delivery is still at best, experimental. This means there will be continued exploring and discovering how to convert the tech into profit. More critically, the current drone has several limitations including weight allowances, battery management, range limits, legal statutes and liability, air traffic control, logistics and financial impetus- all of which must be solved before it takes off.

Neil Saunders

We should not conflate internet sensations over ‘mystery’ drones with Amazon delivering packages. The concerns around regular drones relates more to security and privacy than it does of stoking fears of a pending alien invasion. As I have said before, drones will remain a small, but growing, part of the delivery mix for the foreseeable future. There are some very sensible applications – such as flying medicines to remote or inaccessible areas.

Mark Self
Mark Self

By insisting “there is nothing to see here” the Government made the Drone story/situation much worse. Without a credible answer/explanation, we are left to our imaginations, and those imaginations are vivid and diverse.
So why would drone delivery system be any different? The first mismanaged delivery and you have a story again, and that will impact the foretold rollout of drone delivery.
Any how does any of this make financial sense? This is a non story story with the only purpose being to fill out various “the future is here” stories.

Brian Numainville

Drones are but one potential vehicle for delivery and are still being tested in a number of contexts. The current issues are not indicative of whether or not drones make sense for delivery, which is far more of a practical consideration.

9 Comments
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Newest Most Voted
Inline Feedbacks
View all comments
Craig Sundstrom
Craig Sundstrom

It seems strange the Poll omitted (what is to me) the most obvious issue of all: drone delivery seldom makes any economic sense…unsupported claims of “cheaper” notwithstanding.

David Biernbaum

Drone hysteria does not correlate with drone sales. Furthermore, the hysteria is totally justified since neither the Biden administration, nor the military or FBI informs the affected citizens of the owners of the multiple drones or what their mission is.

The way this drone event has been handled (or not handled) cannot be excused. It’s hard to see how any responsible person in the administration could believe that silence is the best course of action.

Does our government know the answers to these questions? If not, why not? Are they aware of the answers but incapable of formulating a response? I find it hard to believe how poorly the administration is handling this scary enough issue.

But for all we know right now the future sales of drones still look very promising. 

Scott Norris
Scott Norris

Aviation folks figured it out right away and have been showing the evidence for weeks – the vast majority of instances weren’t drones at all but just the navigational & landing lights of aircraft coming in to (mostly) Newark. Yet local and national media kept whipping up nonsense and anxiety, and politicians were drawn to it like mosquitoes. One might as well ask “WHAT WILL THE GOVERNMENT DO ABOUT ALL THESE CONCERNING SASQUATCH REPORTS???”

Bob Amster

Recent events, while they do not justify hysteria, do not bode well for delivery by drone. It will come to pass that, similar to municipalities limiting the number of liquor permits issued, the FAA will issue a limited number of public permits to operate a single drone to businesses. This will limit the efficiency of retailers to operate drone delivery financially efficiently. We won’t be going back to the horse and cart, but delivery drones will not clutter the skies.

Adam Dumey
Adam Dumey
Reply to  Bob Amster

I agree with your position – the comparison between mysterious flying objects located around dense metropolitan areas and/or national security positions does not align with delivery drones.
That said, a more fun discussion could center around how markets will adjust to an increased delivery drone presence (which will happen, especially when final cost models solidify). History shows how we’ve consistently adapted our physical environment to accommodate new delivery methods – from mailboxes to mail slots in doors to package rooms in apartments, and even garage-based delivery systems. Does the next evolution include dedicated drone landing zones on properties or communal ‘drone ports’ in residential developments? I believe we are many years away from drones becoming commonplace (e.g. in 2018, I presented at an aerospace conference where a leading transportation vendor declared drones would be the defacto deliver vehicle by 2024 and that passenger transport would occupy 25% of the market by 2025 – neither are close to materializing); however, is it valuable to shift the discussion beyond regulatory requirements onto the physical enhancements that might come with the growth of drone applications?

Ananda Chakravarty
Ananda Chakravarty

Lots of hysteria about drones won’t impact drone delivery or the overall trend. Drone delivery is still at best, experimental. This means there will be continued exploring and discovering how to convert the tech into profit. More critically, the current drone has several limitations including weight allowances, battery management, range limits, legal statutes and liability, air traffic control, logistics and financial impetus- all of which must be solved before it takes off.

Neil Saunders

We should not conflate internet sensations over ‘mystery’ drones with Amazon delivering packages. The concerns around regular drones relates more to security and privacy than it does of stoking fears of a pending alien invasion. As I have said before, drones will remain a small, but growing, part of the delivery mix for the foreseeable future. There are some very sensible applications – such as flying medicines to remote or inaccessible areas.

Mark Self
Mark Self

By insisting “there is nothing to see here” the Government made the Drone story/situation much worse. Without a credible answer/explanation, we are left to our imaginations, and those imaginations are vivid and diverse.
So why would drone delivery system be any different? The first mismanaged delivery and you have a story again, and that will impact the foretold rollout of drone delivery.
Any how does any of this make financial sense? This is a non story story with the only purpose being to fill out various “the future is here” stories.

Brian Numainville

Drones are but one potential vehicle for delivery and are still being tested in a number of contexts. The current issues are not indicative of whether or not drones make sense for delivery, which is far more of a practical consideration.

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