Cost Benefits for Using Drones at Amazon
As one of the largest online stores in the world, Amazon continues to find new ways to create fast delivery at low prices in hopes to keep as much as they can. If Amazon had its own delivery service, they wouldn’t have to rely on other services like FedEx, UPS, or the USPS and can save the cost of delivery. In order to create its own fast delivery service, Amazon has thought of something that most of us would see in a sci-fi movie.
Currently, Amazon is working on the use of drone technology where they will pilot small aircrafts that delivery small packages up to 5lbs. According to Amazon, the first set of drones “can carry a five pound payload — which is sufficient to deliver 86% of the products in Amazon’s inventory.” (forbes.com). But keep in mind, that Amazon doesn’t plan having drones deliver to every place in the country. For starters, the US probably won’t be the first country that will allow free-range drones. For starters, the FAA, or Federal Aviation Administration, has strict rules about who or what can be in the skies. Because of strict regulations, it’s most likely that “the company [Amazon] will get approval to start Prime Air in other countries before the United States” (cnn.com), but it’s not a total loss since Amazon does have permission to test the drones in small locations that are not in densely populated areas.
As for price, many have speculated that drone delivery can “cost only 20 to 70 cents to deliver a two-kilogram package 10 kilometers—at least a fivefold savings compared to standard truck delivery.” (MIT Technology Review), but the service itself won’t be as cheap as one would expect. Currently, Amazon “charges $7.99 for one-hour delivery of shampoo, paper towels and thousands of other products in some cities, including New York, Baltimore, Miami and Dallas, through its Prime Now program started in December”, so the fee alone to fly the drone is already making Amazon a profit. With...