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Drones

for

Delivery

 
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    The delivery industry consists of companies from many other industries, these include, Domino’s for it’s pizza delivery, Amazon for it’s product delivery and even DHL for shipping mail and packages. All of these different companies are adapting drones to make the delivery of their products faster and eventually less labour intensive. Although the technology to make delivery drones work exists, this industry as a whole faces the biggest regulatory challenges. Which is why it’s important to note that delivery drones will not be seen that commonly at least for the next 5-10 years.

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   Amazon has recently introduced a trial service which it eventually plans to offer everyone called Amazon Prime Air (can be seen on right). The way the service works is that if someone buys a product from amazon and chooses to use Prime Air shipping instead of normal shipping, Amazon will use drones from nearby packaging centres to ship the product in 30 minutes to the buyer [1]. Previously this sort of speed was unthinkable but thanks to drones it’s now possible for products that are in a certain weight category. Amazon will end up charging extra for this service, and many people will use it in the event that they urgently need a product. Which should help Amazon grow revenue and also raise customer satisfaction through a faster shipping method. Slowly more and more consumers will use Prime Air, and Amazon may make it free so as to incite consumers to buy products from Amazon instead of its competitors.

    Although with Amazon speed is something that depends on the consumer’s preference, there are other applications of delivery drones where timely delivery is required. This includes mainly food delivery services such as domino’s (can be seen on right) which promises a delivery time of no more than 30 minutes. This makes domino’s labour intensive as it has to have multiple people for deliveries to multiple locations to be able to make the promise of 30 minutes. However with drones domino’s can decrease this delivery time to be shorter as drones don’t have to go through traffic as well have only one or two operators managing multiple deliveries. This decrease in operators should lead to decreased operating costs and a shorter delivery time should give it an edge over its competitors, increasing revenue.

    The major problem with drone delivery is that although it can eventually be a cheap way to deliver things quickly, for the time being at least it is more expensive than other delivery options and not many consumers would be willing to pay the extra money that it costs for rapid deliveries using drones. Therefore, the economic impact from delivery drones certainly does exist and will come but it will take a long time in which technology develops to become cheaper and make it more viable to use drones for deliveries

[1]"Six Things You Should Know about Amazons Drones." Forbes.com. N.p., n.d. Web. 30 July 2015. <http://www.forbes.com/sites/gregorymcneal/2014/07/11/six-things-you-need-to-know-about-amazons-drones/>.