Over the last few years the new big
thing in technology are drones. According to Flexport, in an article called
“The Economics of Drone Delivery” the future of delivery is looking to drones
as the cheaper modem of delivery. Drones
will provide a quick, cheap, and efficient delivery of products for many leading
companies like Amazon and Wal-Mart.
One idea
that the article does a great job at emphasizing is the fact that Amazon has
designed this drone system to deliver products to customers within thirty
minutes. This could put Amazon drastically above other competing companies
because currently a thirty-minute delivery system is unheard of. Customers who
need products immediately would turn to Amazon if they were guaranteed that
quick delivery and leave their former suppliers. One concern was whether
companies like Amazon and Wal-Mart would be able to make this quick delivery
considering not every American lives near one of these stores or warehouses.
However the article states, “As for distance, Wal-Mart has noted that 70% of
Americans live within 5 miles of a Wal-Mart”. This is huge in drone delivery
because it would allow Wal-Mart to quickly, easily, and efficiently deliver
products to customers through this system.
Another
concern is how companies like Amazon and Wal-Mart would deliver such large and
heavy packages to customers through the drone delivery system. However, the
article also states “In official documents, Amazon has written that 86% of its
packages weigh less than 5 pounds”. Particularly, for Amazon weight is not a
huge concern when considering whether or not drone delivery will be possible.
Yes, Amazon still has 14% of its packages that are over five pounds but
eighty-six percent is still a huge number and would definitely make drone
delivery possible.
In addition
to delivering packages for companies such as Amazon and Wal-Mart, drones could
make an even larger impact. After the earthquakes that occurred in Haiti, drones
were used to deliver essential supplies and food to the Haitians in need. These
supplies were used to save many lives and provide the starving with the
necessities they needed to survive another day. Drones also made an impact on
South Africa when they were used to transport blood samples from clinics to
hospitals to be tested for different diseases such as HIV.
The article
fails to stress the fact that drones are currently banned for commercial use, repercussions
if drones malfunction, and cost for customers who want their product delivered
by drone. According to an outside source the business insider, “The drone
industry is frightening to many because its military applications are what
tends to make news”. The FAA currently bans drones for all commercial use and
therefore none of this will be possible for companies like Amazon if this law
is not overturned. Until this law changes, drone delivery for commercial will
not be possible, whether the technology is available and ready or not.
Original Source:
https://www.flexport.com/blog/drone-delivery-economics/
Outside Source:
http://www.businessinsider.com/faa-ban-on-commercial-drones-2013-3
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