Drone delivery

June 3, 2024

©Andy Dean Photography via Canva.com

Are Drones Almost Ready for Takeoff?

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Amazon’s Prime Air drone program has been cleared by the Federal Aviation Administration (FAA) to fly devices beyond the visual line of sight, clearing a key regulatory hurdle to the e-commerce giant’s plans to expand the reach of its deliveries.

The long-awaited approval, which means pilots won’t need to be able to see the drones with their own eyes, will “allow Prime Air to further expand drone deliveries and lays the foundation to safely scale operations to more locations in the U.S.,” Amazon explained on its website.

Amazon said it has worked for years to develop and refine its “detect-and-avoid technology” to allow pilots to operate the drone remotely while avoiding any obstacles in the air. To obtain FAA approval, flight demonstrations were conducted for FAA inspectors “to show our system works in real-world scenarios.”

“We flew in the presence of real planes, helicopters, and a hot air balloon to demonstrate how the drone safely navigated away from each of them,” Amazon said.

The approval allows Amazon to “immediately” broaden its delivery area in College Station, Texas, one of the company’s initial test sites launched in 2022. It also clears the way for Amazon to launch drone deliveries to the West Valley of the Phoenix area in Arizona later this year.

Prime Air has struggled to get off the ground since Jeff Bezos first laid out his vision on “60 Minutes” for the service in 2014.

“Our vision has remained unchanged since we started working on Prime Air: to create a safe and scalable way to deliver packages to customers in 30 minutes or less using highly autonomous drones,” Amazon’s announcement last week read.

The company aims to use drones to deliver 500 million packages each year — a goal it hopes to reach by the end of the decade.

The FAA requires commercial drone operators to physically be able to see the drones as they operate them unless they have developed BVLOS (Beyond Visual Line of Sight) technology that ensures a remote pilot can operate the device safely. Other drone operators, including UPS, Wing, FedEx, and Zipline, have already received BVLOS clearance.

Many of the concerns about drone delivery from privacy advocates as well as some airplane and balloon pilots were laid out in a Bloomberg column in April entitled, “Amazon and Walmart Need to Give Up on Drones,” from columnist Leticia Miranda.

Beyond BVLOS prohibitions at the time, she cited the legal question of who owns the airspace over private properties. Noise complaints, challenges flying in bad weather, limits to package size, and the cost were also cited.

She pointed to a 2023 McKinsey study estimating that single-package drone delivery would have an operating cost of $13.50 due to high labor costs, as regulations in most countries and regions require people to only operate and monitor one drone at a time. However, the same study estimated that if drone operators can eventually manage 20 drones simultaneously, a single package delivery would cost about $1.50 to $2, which is lower than the per-package cost for an electric car delivering five packages.

Proponents predict advances in technology will help drone delivery make a leap forward this year. Last October, Amazon introduced a delivery drone, the MK30, that is smaller and quieter than prior models and can fly through light rain.

In Amazon’s 2023 shareholder letter, CEO Andy Jassy said that Prime Air is making “substantial progress” despite skeptics. He wrote, “Drones will eventually allow us to deliver packages to customers in less than an hour. It won’t start off being available for all sizes of packages and in all locations, but we believe it’ll be pervasive over time. Think about how the experience of ordering perishable items changes with sub-one-hour delivery?”

BrainTrust

"While hurdles exist, advancements in tech, regulatory support, and industry commitment suggest a potential for drone delivery to become a sustainable and widespread service…"
Avatar of Oliver Guy

Oliver Guy

Global Industry Architect, Microsoft Retail


"In the short term, it will be more showcased than widely implemented for a variety of reasons. But it does increase options for delivery, even if only in certain situations…"
Avatar of Brian Numainville

Brian Numainville

Principal, The Feedback Group


"Like so many things in retail, drone delivery isn’t meant to replace other delivery methods, it’s an augmentation strategy."
Avatar of Carol Spieckerman

Carol Spieckerman

President, Spieckerman Retail


Discussion Questions

How confident are you that drone delivery will be sustainable and soon scale nationwide?

Do you see cost-effectiveness, consumer acceptance, safety, or another issue as the largest hurdle?

Poll

14 Comments
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Neil Saunders

The decision of the FAA to loosen the regulations around flying beyond the line of sight for Prime Air widens, at a stroke, the number of customers Amazon can serve with drone technology. However, this does not spell a free-for-all in terms of drone delivery. The restrictions have been lifted in specific locations and circumstances, so drone delivery will remain far from widespread – at least for the moment. Longer term, drone delivery will become a wider part of the fulfilment ecosystem, but I also think it will be confined to specific types of delivery (weight and product wise) and be better suited to some areas than others. Traditional delivery will remain the backbone of most retailer’s fulfilment networks with a hope that automated vehicles will eventually reduce costs. 

Last edited 1 year ago by Neil Saunders
Gene Detroyer
Reply to  Neil Saunders

I will never see a drone delivery for me at 57th and First in Manhattan. I will likely see a drone delivery to the country house, which makes ultimate sense.

Cathy Hotka
Cathy Hotka

Retail drones are to 2024 what personal hovercraft were to 1968. Noisy, dangerous, expensive and completely impractical, drones just aren’t going anywhere…but Amazon has a genius PR machine.

Paula Rosenblum
Reply to  Cathy Hotka

What’s sad is “real retailers” will chase them down that silly road. It’s like Just Walk Out. That was always a pig in a poke for the most mundane reasons, but the industry chased it lemming-like. Drones will be useful in remote locations. Of course I wonder about the burning need to receive deliveries in a half hour, but I think I’m old and cranky.

Brian Numainville

The FAA’s approval for Amazon to operate Beyond Visual Line of Sight (BVLOS) is a another step forward for them, although other drone operators already have this clearance. It will help showcase the potential for faster and more efficient deliveries, but in the short-term, it will be more showcasing than widely implemented for a variety of reasons. But it does increase options for delivery, even if only in certain situations, and longer term will be an accepted part of a range of delivery options.

Last edited 1 year ago by Brian Numainville
Gene Detroyer

Brian, unlike the naysayers you recognize today’s drones are not the same as they were five years ago. And likewise, tomorrow’s drones will far superior to what we have today.

David Biernbaum

Amazon’s Prime Air program promises to deliver packages within 30 minutes. I think more time is needed before take off.

The purpose is speed. No delays from trucks, planes are ground traffic on L.A. freeways, and drones provide plenty of efficiencies, including no pilot, little or no gas, and these are hard to steal, or steal from.

Amazon will need to deal with public relations because folks on the ground are concerned about surveillance. But rest assured, in spite of cameras and sensors there will be no surveillance. Many people just don’t want these things flying around in their neighborhoods.

Amazon will also need to deal with another small matter – – FAA regulations. Db

Last edited 1 year ago by David Biernbaum
Oliver Guy

This is super exciting and I am cautiously optimistic about the sustainability and scaling of drone delivery. The FAA’s approval for Amazon’s Prime Air to operate beyond visual line of sight is a significant regulatory milestone. Amazon’s detect-and-avoid technology and successful flight demonstrations showcase the potential for safe, remote operation of drones.
But challenges remain, such as public acceptance, noise concerns, and weather limitations. The economic viability could well be promising – drastically reduce delivery costs and time.
Overall, while hurdles exist, the advancements in technology, regulatory support, and industry commitment suggest a strong potential for drone delivery to become a sustainable and widespread service in the near future

Lisa Goller
Lisa Goller

This approval is a win that strengthens Amazon’s robust logistics capabilities. While it will take time to scale nationwide, sustainability benefits and time savings make drone delivery more attractive. For remote consumers or those with urgent needs for pharmacy or healthcare items, rapid drone delivery could offer a vital service.

Mark Ryski

Notwithstanding this recent approval by the FAA to fly beyond line-of-sight, I still see plenty of hurdles to this becoming a widely used and accepted means of delivery. Amazon has invested so heavily in this space, they are determined to see it through. But that still doesn’t mean it will succeed. What happened to Just Walkout? Assuming all the safety issues get cleared by the FAA, there’s still the issue of noise and annoyance. Swarms of drones, flying around dropping off goods – hopefully never in my neighborhood. And I suspect a lot of people will feel the same way. Drone delivery does have a place in the delivery ecosystem, I just don’t see it being a big place. 

Gene Detroyer

A military drone can fly hundreds of miles, largely undetected and blow things up. Delivering a package to a largely rural location would be a no-brainer. Macro-history of technology tells one thing, if there is a need, technology will improve to meet that need.

Bob Amster

As I stated before, drones will fill a void and their use will continue to grow until they start crowding the skyways, become a nuisance, or worse, cause an accident. Then, regulation will come in and growth will plateau.

Last edited 1 year ago by Bob Amster
Carol Spieckerman

Like so many things in retail, drone delivery isn’t meant to replace other delivery methods, it’s an augmentation strategy. The article focuses on Amazon yet I see drones taking off on the regular at my local Walmart Supercenter. Any drone delivery scaling will likely be led by Amazon, Walmart, and a handful of other big players that can afford early losses and navigate (and influence) regulatory hurdles.

Mark Self
Mark Self

Okay, so in the future, we will be able to get stuff delivered to us in an hour. How important is that, really? Is it exciting enough for us to wait on all of the potential operational pitfalls before anyone gets to mass commercialization?
FAA or not, I think this will remain a potential Jetsons rerun for a long time.

14 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Neil Saunders

The decision of the FAA to loosen the regulations around flying beyond the line of sight for Prime Air widens, at a stroke, the number of customers Amazon can serve with drone technology. However, this does not spell a free-for-all in terms of drone delivery. The restrictions have been lifted in specific locations and circumstances, so drone delivery will remain far from widespread – at least for the moment. Longer term, drone delivery will become a wider part of the fulfilment ecosystem, but I also think it will be confined to specific types of delivery (weight and product wise) and be better suited to some areas than others. Traditional delivery will remain the backbone of most retailer’s fulfilment networks with a hope that automated vehicles will eventually reduce costs. 

Last edited 1 year ago by Neil Saunders
Gene Detroyer
Reply to  Neil Saunders

I will never see a drone delivery for me at 57th and First in Manhattan. I will likely see a drone delivery to the country house, which makes ultimate sense.

Cathy Hotka
Cathy Hotka

Retail drones are to 2024 what personal hovercraft were to 1968. Noisy, dangerous, expensive and completely impractical, drones just aren’t going anywhere…but Amazon has a genius PR machine.

Paula Rosenblum
Reply to  Cathy Hotka

What’s sad is “real retailers” will chase them down that silly road. It’s like Just Walk Out. That was always a pig in a poke for the most mundane reasons, but the industry chased it lemming-like. Drones will be useful in remote locations. Of course I wonder about the burning need to receive deliveries in a half hour, but I think I’m old and cranky.

Brian Numainville

The FAA’s approval for Amazon to operate Beyond Visual Line of Sight (BVLOS) is a another step forward for them, although other drone operators already have this clearance. It will help showcase the potential for faster and more efficient deliveries, but in the short-term, it will be more showcasing than widely implemented for a variety of reasons. But it does increase options for delivery, even if only in certain situations, and longer term will be an accepted part of a range of delivery options.

Last edited 1 year ago by Brian Numainville
Gene Detroyer

Brian, unlike the naysayers you recognize today’s drones are not the same as they were five years ago. And likewise, tomorrow’s drones will far superior to what we have today.

David Biernbaum

Amazon’s Prime Air program promises to deliver packages within 30 minutes. I think more time is needed before take off.

The purpose is speed. No delays from trucks, planes are ground traffic on L.A. freeways, and drones provide plenty of efficiencies, including no pilot, little or no gas, and these are hard to steal, or steal from.

Amazon will need to deal with public relations because folks on the ground are concerned about surveillance. But rest assured, in spite of cameras and sensors there will be no surveillance. Many people just don’t want these things flying around in their neighborhoods.

Amazon will also need to deal with another small matter – – FAA regulations. Db

Last edited 1 year ago by David Biernbaum
Oliver Guy

This is super exciting and I am cautiously optimistic about the sustainability and scaling of drone delivery. The FAA’s approval for Amazon’s Prime Air to operate beyond visual line of sight is a significant regulatory milestone. Amazon’s detect-and-avoid technology and successful flight demonstrations showcase the potential for safe, remote operation of drones.
But challenges remain, such as public acceptance, noise concerns, and weather limitations. The economic viability could well be promising – drastically reduce delivery costs and time.
Overall, while hurdles exist, the advancements in technology, regulatory support, and industry commitment suggest a strong potential for drone delivery to become a sustainable and widespread service in the near future

Lisa Goller
Lisa Goller

This approval is a win that strengthens Amazon’s robust logistics capabilities. While it will take time to scale nationwide, sustainability benefits and time savings make drone delivery more attractive. For remote consumers or those with urgent needs for pharmacy or healthcare items, rapid drone delivery could offer a vital service.

Mark Ryski

Notwithstanding this recent approval by the FAA to fly beyond line-of-sight, I still see plenty of hurdles to this becoming a widely used and accepted means of delivery. Amazon has invested so heavily in this space, they are determined to see it through. But that still doesn’t mean it will succeed. What happened to Just Walkout? Assuming all the safety issues get cleared by the FAA, there’s still the issue of noise and annoyance. Swarms of drones, flying around dropping off goods – hopefully never in my neighborhood. And I suspect a lot of people will feel the same way. Drone delivery does have a place in the delivery ecosystem, I just don’t see it being a big place. 

Gene Detroyer

A military drone can fly hundreds of miles, largely undetected and blow things up. Delivering a package to a largely rural location would be a no-brainer. Macro-history of technology tells one thing, if there is a need, technology will improve to meet that need.

Bob Amster

As I stated before, drones will fill a void and their use will continue to grow until they start crowding the skyways, become a nuisance, or worse, cause an accident. Then, regulation will come in and growth will plateau.

Last edited 1 year ago by Bob Amster
Carol Spieckerman

Like so many things in retail, drone delivery isn’t meant to replace other delivery methods, it’s an augmentation strategy. The article focuses on Amazon yet I see drones taking off on the regular at my local Walmart Supercenter. Any drone delivery scaling will likely be led by Amazon, Walmart, and a handful of other big players that can afford early losses and navigate (and influence) regulatory hurdles.

Mark Self
Mark Self

Okay, so in the future, we will be able to get stuff delivered to us in an hour. How important is that, really? Is it exciting enough for us to wait on all of the potential operational pitfalls before anyone gets to mass commercialization?
FAA or not, I think this will remain a potential Jetsons rerun for a long time.

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