In the past few months, several companies have been reanimating interest in a drone delivery market here in the U.S. They’re not looking back — they’re committed to moving beyond past failures and reaching more people with their services. Wing, a subsidiary of Alphabet Inc., has had something of a longer slow start even as it seems primed for dramatic upticks in growth. As WhalePoint Technologies’ CEO Adam Woodworth explained, drone delivery has been in a “treading water mode” in the U.S. for years. He believes the industry is just on the cusp of making major breakthroughs.
Wing’s drones are limited to packages weighing no more than 2.5 pounds. This innovation is just one piece of a much larger effort to integrate drones into our everyday lives. Other companies, including Amazon and DoorDash, are making strides in this sector, each with unique approaches and operational strategies.
DoorDash has been using drone delivery in the suburbs around Brisbane, Australia, led by Harrison Shih. Shih commented on the limitations of current drone capabilities, stating, “I believe that drone delivery can be fairly ubiquitous and can cover a lot of things. We just don’t think it’s probable today that it’ll carry a 40-pound bag of dog food to you.” This further underscores the challenges companies still face as they work to address a wide array of consumer demands.
Amazon—another key player in the expected future of drone delivery—just got FAA approval last year. This approval permits them to operate autonomous drones beyond a pilot’s visual line of sight. The company’s affirmative Prime Air delivery service, meanwhile, recently opened in College Station, Texas, and spread to suburbs of Phoenix. Amazon envisions expanding its drone delivery services to Dallas, San Antonio, and Kansas City in the coming months.
Zipline is the other major player that’s partnered with Walmart. Their commercial drones can transport 4 pounds up to 120 miles roundtrip. Since 2016, Zipline has been successfully delivering medical supplies to hospitals in Rwanda, establishing a template for future domestic operations. Walmart is preparing to massively ramp up its drone delivery capacity. By next summer, it will have hit the century mark in cities such as Atlanta, Charlotte, Houston, Orlando and Tampa.
All of these developments have resulted in an operational expansion of capability, but cost is still a big factor in drone delivery. At present, each delivery on an autonomous drone costs about $13.50, versus $2 or so for vehicle-based deliveries. At this price point, one has to wonder just how economically viable drone delivery can be in the long run as a popular consumers’ choice.
Companies that are manufacturing and deploying drone technology have innovation in their DNA. As a result, one pilot can now control up to 32 drones simultaneously. This ability is critical not only for modernizing operations at scale, but doing so safely and reliably. With a maximum range of 12 miles round trip, drones could be an excellent fit in suburban environments, where demand is quickly rising.
Consumer reactions to drone deliveries have varied. Some individuals express enjoyment at the experience, with one customer, Julep Toth, stating, “I love to go outside, wave at the drone, say ‘Thank you’ and get the food.” It’s no wonder that many have described the sound of drones as intrusive. Further, one anonymous respondent went so far as to call it “a huge buzzing pest.”
John Kim, another consumer, noted the quality of drone deliveries, saying, “It’s very stable, maybe even better than some of the drivers that toss it in the back with all the other orders.” This sentiment speaks to the acceptance of drone technology by the enterprise customers that have come to value the efficiency and reliability of drone deliveries.
Reilly Woodworth, government relations manager for Wing, said timing matters greatly in determining if and when new drone delivery services become successful. You have to find that magic moment in time where customer demand, partner demand, technical readiness and regulatory readiness align. Right now, we’re close to hitting that ideal alignment,” he said. His remarks are very encouraging indeed, indicating optimism about removing blockages that have long stood in the way of blossoming development in this space.
As these advancements continue to evolve, drone delivery is quickly becoming an integral part of logistics innovations. Leading companies from coast-to-coast, from Virginia to Washington state, are adopting this creative new strategy. Consumers seem to be more willing than ever to accept this emerging technology as it develops and grows in versatility.
