Amazon announced Monday that Amazon Prime customers in Lockeford (California) will soon start receiving drone deliveries of packages. This would place the 3,500-strong community among the first U.S. locations that receive drone deliveries within 30 minutes -- a promise Jeff Bezos made almost a decade ago.
A spokesperson for Amazon, Av Zammit, stated that the e-commerce company began contacting Lockeford customers this week to request their consent to drone delivery. Zammit said that once a customer has signed up, an Amazon employee will visit their property to verify that it is ready for drone deliveries.
Prime members will receive drone delivery at no cost. Only Prime members are allowed to use the service. Zammit stated that drone delivery will be available for "thousands" of items, but declined to provide more details.
According to a blog post, Amazon stated that it was working with local regulators and the Federal Aviation Administration to obtain permits for the program.
"Lockeford residents are going to play an important part in shaping the future." Their feedback on Prime Air with drones delivering packages to their yards will help us create an efficient service that can meet the needs customers all over the world," the blog post said. It also predicted that drone deliveries could one day be as common as Amazon delivery vans pulling up outside your home.
Amazon was approved by the FAA in 2020 for commercial drone delivery. Drones must comply with both federal and local regulations.
According to Zak Stambor (senior analyst for retail and ecommerce at Insider Intelligence), Amazon is responsible for the current race to commercialize drone delivery. Stambor stated that when Bezos presented his vision for drones in 60 Minutes 2013, "He inspired everyone else to get into that space."
Others large technology companies and retailers are also developing drone programs. Walmart began testing drone delivery in Arkansas last year and plans to expand its reach to six other states. Wing, Alphabet's drone delivery service, was launched in the summer near Dallas-Fort Worth. It delivers prescriptions, pet medication, and ice cream. UPS is also working on a drone service.
According to media reports, Amazon's drone program has been plagued by delays and staff turnover. Business Insider reported that at least eight Amazon drones have crashed in the last year and that 71% of the staff are experiencing turnover. Bloomberg News' April investigation found that Amazon is still far from launching drone delivery services, despite having spent $2 billion on the program and employed more than 1,000 workers.
Stambor stated that drones are gaining popularity among retailers due to rising energy costs and tight labor markets.
You can see why drone delivery makes sense. In a time when there is a labor shortage it's hard to find truck drivers. Stambor stated that gas prices have been rising steadily and are not likely to fall.
He said drone delivery faces "a multitude of challenges in terms of safety and costs" making it unclear whether drones are able to solve logistical bottlenecks.
Stambor stated that drone delivery is more expensive than truck delivery and requires a skilled operator. Amazon estimates that an airlifted package will cost $63 compared to $5 if it is sent by a third-party carrier such as UPS or the U.S. Post Office.
Insider Intelligence projects that there will be 39,000 delivery drones this year and 69,000 next.
