Amazon Expands Drone Delivery Service to Suburban Areas in 500 U.S. Cities
Amazon has announced plans to expand its drone delivery service to suburban areas in nearly 500 U.S. cities by the end of the year. Customers could receive packages weighing up to 5 pounds in as fast as 30 minutes. This move will intensify the competition between Amazon and Walmart in providing fast delivery services. The drones will primarily operate in suburban areas away from skyscrapers and major airports to avoid potential obstacles.
Despite the expansion, drones will still handle only a fraction of the total package deliveries each year due to various challenges such as tree cover and regulatory hurdles. Amazon Prime members ordering over $50 worth of goods will receive free drone delivery, while smaller orders will cost $2.99 for members and $4.99 for non-members. The company is still testing the service and working on the economics of drone delivery.
Drones could be particularly useful for urgent, lightweight deliveries like prescription medications. Amazon CEO Andy Jassy mentioned in his annual letter that the company has been testing drones in multiple locations across several states. Amazon aims to serve communities with 30 million customers by the end of the year and deliver half a billion packages by the end of the decade.
Amazon has already obtained certification from the Federal Aviation Administration for its drone operations and has implemented safety measures to prevent collisions during deliveries. The federal government is considering a rule that would allow more drone operators to fly beyond the line of sight, but it has not been finalized yet.