GET DAILY REPORT FREE
Millions more people may be able to get smaller, lightweight Amazon packages delivered by drones by the end of the year under a plan the company announced Thursday to expand airborne shipping to suburban areas in nearly 500 U.S. cities.
Customers could receive the drone deliveries in as fast as 30 minutes, Amazon said in a news release. The drones can carry packages up to 5 pounds.
The plan will intensify the battle between Amazon and Walmart to provide consumers with the fastest delivery times. Both giants rely on a mix of drones and drivers to deliver everything consumers have ordered.
Amazon’s plan would expand its drone delivery operation more than sixfold nationwide into hundreds of new communities, including the Chicago, Atlanta, Cleveland and Boise, Idaho, metro areas. The drones will primarily fly in suburbs well away from skyscrapers and major airports that could cause problems.
Drone delivery is growing fast but remains limited
Hundreds of thousands of packages have already been delivered by Amazon drones this year, but even after this expansion drones will still only handle a fraction of the hundreds of millions of package deliveries each year. In addition to only being able to carry 5 pounds, the drones Amazon builds face countless challenges from tree cover to landscaping and inflatable pools that can make it hard to find a good drop zone.
There are also regulatory hurdles to overcome in every community where Amazon wants to set up operations. Noise concerns also pose a potential challenge.
“It’s still an experiment. It’s still in test-and-learn mode,” says Sucharita Kodali, a retail analyst with Forrester.
