Key facts
- Amazon plans to expand drone delivery to nearly 500 U.S. cities by year-end.
- The service will deliver packages up to 5 pounds.
- Deliveries are expected to take as little as 30 minutes.
- The expansion will cover suburban areas in major metro regions.
- Amazon has invested in safety features and obtained FAA waivers for drone operations.
Amazon announced plans to significantly expand its drone delivery service, aiming to reach millions more consumers in nearly 500 U.S. cities by the end of the year. The expansion will focus on suburban areas, allowing customers to receive lightweight packages weighing up to 5 pounds in as little as 30 minutes. This move intensifies competition with other retailers for faster delivery times.
Amazon's CEO, Andy Jassy, indicated that the company has gained valuable insights from its existing drone operations across 11 sites. The company has invested in safety measures and secured waivers from the Federal Aviation Administration to fly drones beyond the visual line of sight. Despite the expansion, drone deliveries will still represent a small fraction of Amazon's overall package volume, facing challenges such as weight limitations and environmental factors like tree cover.
Retail analyst Sucharita Kodali noted that while the novelty of drone delivery might initially attract customers, its long-term usage and economic viability are still being assessed. Pricing for the service will vary, with Prime members receiving free delivery on orders over $50, while smaller orders and non-member deliveries will incur fees. Kodali suggested drones could be particularly useful for urgent, lightweight deliveries like prescription medications. Other delivery companies are also exploring drone technology for food and goods delivery.