Amazon drone delivery expansion targets 500 cities by year’s end

Amazon (NASDAQ: AMZN) previously said it would begin serving customers in the southside of Chicago from two fulfillment centers by early summer. The launch of Prime Air in Memphis, Tennessee, has been delayed from its June target date, said a source who has attended local government briefings aimed at coordinating safety protocols.

“Customers already turn to Amazon for fast Same- and Next-Day Delivery, and Prime Air provides them an even speedier option when they need it,” said David Carbon, vice president of Amazon Prime Air.  

Experts say ultra-fast delivery is becoming a standard necessity for retailers. On Tuesday, Home Depot announced the nationwide rollout of express delivery for online orders fulfilled from local stories — the latest example of retailers trying to offer faster delivery options on the premise that it can convert browsers into buyers. Walmart is also rapidly growing same-day and three-hour delivery service.

(Why It Matters: Amazon is the largest U.S. retailer and a trend setter, especially for technology adoption. Using drones will keep vehicles off the road, reducing traffic and emissions.)
Globally, Amazon delivered more than 40% of items same day or overnight in the first half of the year versus the same period last year. And it expanded ultra-fast delivery service Amazon Now, which promises delivery in 30 minutes or less on thousands of everyday essentials, to 80 cities and towns across the United States and several major cities in Egypt. Amazon Now is available in nine countries and over 250 cities and towns, including Atlanta, Houston and Denver. Management says faster delivery speeds combined with a broad selection of products on the marketplace are driving consumers to make more purchases on the Amazon site. 

For Amazon Now, Prime members pay a discounted delivery fee of $3.99 per order, while customers without a Prime membership pay $13.99.

Amazon and Home Depot, notably, are charging extra for ultra-fast delivery.

What drone delivery looks like

The MK30 drone used by Amazon has a payload of five pounds. More than 60% of the most frequently purchased items are eligible for drone delivery. Most orders arrive about 60 minutes after checkout, Amazon said.

Drone delivery is free for Prime members on orders of $50 or more. The delivery fee is $2.99 on orders less than $50. Customers without a Prime membership pay a $4.99 delivery fee. 

Customers see drone delivery as an option in their checkout experience if it is available in their area. A satellite map of their property shows options for “delivery zones,” pre-identified using Amazon’s digital mapping and AI systems. The customer can then select one of the drop-off zones and will be reminded to keep the area clear, according to Amazon. 

The drones cruise at about 73 mph and 200 to 300 feet high. Six vertical propellers provide lift, with staggered tandem wings supporting cruise flight. They can fly in light precipitation and winds faster than 20 mph. Parcels are stored in a shoebox-sized fuselage and dropped to the ground from about 13 feet up. 

When a drone arrives at the selected delivery point with an order, it descends while cameras check to make sure there are no people, pets or vehicles in the way. The drone then drops the parcel from a safe height. Prime Air boxes have customized cushioning technology at the bottom to protect the item during delivery.  

Certified by the Federal Aviation Administration, Prime Air uses a number of systems to ensure operational safety. A collision-avoidance system monitors the airspace and environment around the drone, similar to how a pilot would scan the flight area. Prime Air drones use onboard cameras and sensors for navigation, obstacle detection and delivery. There is no live camera feed monitored by a person. The onboard camera data is processed by the drone itself for safe navigation.

Amazon recently publicized its Prime Air drone service in Darlington, England — the first location outside the United States to offer unmanned air delivery.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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