logo
Delivery drones coming to more US neighbourhoods after slow start

Delivery drones coming to more US neighbourhoods after slow start

Delivery drones are so fast they can zip a pint of ice cream to a customer's driveway before it melts.
Yet the long-promised technology has been slow to take off in the United States. More than six years after the Federal Aviation Administration approved commercial home deliveries with drones, the service mostly has been confined to a few suburbs and rural areas.
That could soon change. The FAA proposed a new rule last week that would make it easier for companies to fly drones outside of an operator's line of sight and therefore over longer distances. A handful of companies do that now, but they had to obtain waivers and certification as an air carrier to deliver packages.
While the rule is intended to streamline the process, authorised retailers and drone companies that have tested fulfilling orders from the sky say they plan to make drone-based deliveries available to millions more US households.
Walmart's multistate expansion Walmart and Wing, a drone company owned by Google parent Alphabet, currently provide deliveries from 18 Walmart stores in the Dallas area. By next summer, they expect to expand to 100 Walmart stores in Atlanta; Charlotte, North Carolina; Houston; and Orlando and Tampa, Florida.
After launching its Prime Air delivery service in College Station, Texas, in late 2022, Amazon received FAA permission last year to operate autonomous drones that fly beyond a pilot's line of sight. The e-commerce company has since expand its drone delivery program to suburban Phoenix and has plans to offer the service in Dallas, San Antonio, Texas, and Kansas City.
The concept of drone delivery has been around for well over a decade. Drone maker Zipline, which works with Walmart in Arkansas and the Dallas-Fort Worth area, began making deliveries to hospitals in Rwanda in 2016. Israel-based Flytrex, one of the drone companies DoorDash works with to carry out orders, launched drone delivery to households in Iceland in 2017.
But Wing CEO Adam Woodworth said drone delivery has been in treading water mode in the U.S. for years, with service providers afraid to scale up because the regulatory framework wasn't in place.
You want to be at the right moment where there's an overlap between the customer demand, the partner demand, the technical readiness and the regulatory readiness, Woodworth said. I think that we're reaching that planetary alignment right now.
Flying ice cream and eggs DoorDash, which works with both Wing and Flytrex, tested drone drop-offs in rural Virginia and greater Dallas before announcing an expansion into Charlotte. Getting takeout food this way may sound futuristic, but it's starting to feel normal in suburban Brisbane, Australia, where DoorDash has employed delivery drones for several years, said Harrison Shih, who leads the company's drone program.
It comes so fast and it's something flying into your neighborhood, but it really does seem like part of everyday life, Shih said.
Even though delivery drones are still considered novel, the cargo they carry can be pretty mundane. Walmart said the top items from the more than 150,000 drone deliveries the nation's largest retailer has completed since 2021 include ice cream, eggs and Reese's Peanut Butter Cups.
Unlike traditional delivery, where one driver may have a truck full of packages, drones generally deliver one small order at a time. Wing's drones can carry packages weighing up to 2.5 pounds. They can travel up to 12 miles round trip. One pilot can oversee up to 32 drones.
Zipline has a drone that can carry up to 4 pounds and fly 120 miles round trip. Some drones, like Amazon's, can carry heavier packages.
Once an order is placed, it's packaged for flight and attached to a drone at a launch site. The drone automatically finds a route that avoids obstacles. A pilot observes as the aircraft flies to its destinations and lowers its cargo to the ground with retractable cords.
Risks and rewards of commercial drones Shakiba Enayati, an assistant professor of supply chain and analytics at the University of Missouri, St. Louis, researches ways that drones could speed the delivery of critical health supplies like donated organs and blood samples. The unmanned aircraft offer some advantages as a transport method, such as reduced emissions and improved access to goods for rural residents, Enayati said.
But she also sees plenty of obstacles. Right now, it costs around USD 13.50 per delivery to carry a package by drone versus USD 2 for a traditional vehicle, Enayati said. Drones need well-trained employees to oversee them and can have a hard time in certain weather.
Drones also can have mid-air collisions or tumble from the sky. But people have accepted the risk of road accidents because they know the advantages of driving, Enayati said. She thinks the same thing could happen with drones, especially as improved technology reduces the chance for errors.
Woodworth added that US airspace is tightly controlled, and companies need to demonstrate to the FAA that their drones are safe and reliable before they are cleared to fly. Even under the proposed new rules, the FAA would set detailed requirements for drone operators.
That's why it takes so long to build a business in the space. But I think it leads to everybody fundamentally building higher quality things, Woodworth said.
Others worry that drones may potentially replace human delivery drivers. Shih thinks that's unlikely. One of DoorDash's most popular items is 24-packs of water, Shih said, which aren't realistic for existing drones to ferry.
I believe that drone delivery can be fairly ubiquitous and can cover a lot of things. We just don't think its probable today that it'll carry a 40-pound bag of dog food to you," Shih said.
The view from the ground in Texas DoorDash said that in the areas where it offers drone deliveries, orders requiring the services of human delivery drivers also increase.
That's been the experience of John Kim, the owner of PurePoke restaurant in Frisco, Texas. Kim signed on to offer drone deliveries through DoorDash last year. He doesn't know what percentage of his DoorDash customers are choosing the service instead of regular delivery, but his overall DoorDash orders are up 15 per cent this year.
Kim said he's heard no complaints from drone delivery customers.
It's very stable, maybe even better than some of the drivers that toss it in the back with all the other orders, Kim said.
For some, drones can simply be a nuisance. When the FAA asked for public comments on Amazon's request to expand deliveries in College Station, numerous residents expressed concern that drones with cameras violated their privacy. Amazon says its drones use cameras and sensors to navigate and avoid obstacles but may record overhead videos of people while completing a delivery.
Other residents complained about noise.
It sounds like a giant nagging mosquito, one respondent wrote. Amazon has since released a quieter drone.
But others love the service. Janet Toth of Frisco, Texas, said she saw drone deliveries in Korea years ago and wondered why the US didn't have them. So she was thrilled when DoorDash began providing drone delivery in her neighbourhood.
Toth now orders drone delivery a few times a month. Her 9-year-old daughter Julep said friends often come over to watch the drone.
I love to go outside, wave at the drone, say Thank you' and get the food, Julep Toth said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Karnataka high court rejects I-T appeal against Sony India Software Centre
Karnataka high court rejects I-T appeal against Sony India Software Centre

Time of India

time2 hours ago

  • Time of India

Karnataka high court rejects I-T appeal against Sony India Software Centre

Bengaluru: Karnataka high court has dismissed an appeal filed by the income tax (I-T) department against Sony India Software Centre Pvt Ltd, Bengaluru, in a case involving tax treatment of free assets and foreign consultancy payments. The appeal challenged a June 12, 2024 order of the I-T commissioner (appeals), Bengaluru, which had partly allowed the company's challenge to its assessment for the financial year 2016-17 (assessment year 2017-18). That order was later upheld by the Income Tax Appellate Tribunal (ITAT), Bengaluru, on Dec 13, 2024. At the centre of the dispute were two additions made by the assessing officer. The first, of more than Rs 1.4 crore, concerned assets received by the company from its overseas associated enterprises without cost. The second, a disallowance of nearly Rs 9.6 lakh, related to payments made to Singapore-based JL Services and Consultancy for employee workshops, allegedly without deduction of tax at source (TDS). You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru | Gold Rates Today in Bengaluru | Silver Rates Today in Bengaluru Sony India Software Centre had declared an income of Rs 40.1 crore under "profits and gains from business" and "income from other sources" in its AY 2017-18 return. The assessing officer increased this to Rs 44.8 crore by adding the value of the assets and disallowing the consultancy fee. The company argued that the assets were prototypes supplied solely for testing and were not income under Section 28(iv) of the Income Tax Act. It also maintained that the payments to the Singapore firm were for independent personal services and were exempt from TDS under the India–Singapore Double Taxation Avoidance Agreement (DTAA). The CIT(A) accepted both arguments. It ruled that the fixed asset addition was unwarranted as the assets were covered under an Advance Pricing Agreement and depreciation had been factored in. The I-T department contended that the workshops did involve technical services and that TDS should have been deducted under Section 195. A division bench of Chief Justice Vibhu Bakhru and Justice CM Joshi rejected this view, noting there was no dispute that the free assets were returned and that the workshops were general training sessions for staff, without transfer of technical know-how. Finding no grounds to interfere, the court upheld the earlier orders and dismissed the appeal. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area. Get the latest lifestyle updates on Times of India, along with Happy Krishna Janmashtami Wishes ,, messages , and quotes !

S&P upgrade likely to cut govt borrowing costs: Finmin official
S&P upgrade likely to cut govt borrowing costs: Finmin official

Time of India

time3 hours ago

  • Time of India

S&P upgrade likely to cut govt borrowing costs: Finmin official

New Delhi: S&P's upgrade of its long-term sovereign credit rating on India after 18 years citing economic resilience can potentially lower the government's borrowing costs, a senior finance ministry official said. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency The upgrade in rating to 'BBB' from the lowest investment grade of 'BBB-' will add to the investor optimism about the country's strong macroeconomic fundamentals, despite persisting external headwinds, including an extra 50% US tariffs on Indian exports, he reckoned. The yield on 10-year benchmark government securities inched up 10 basis points over the past one month to close at 6.41% on Thursday, but it still remained 45 basis points lower than a year before. The yield has risen in recent weeks over concerns about lower-than-expected direct tax collections, over-supply of papers and fading hope of an interest rate cut in October, according to analysts. The central bank has trimmed the repo rate by 100 basis points since February to 5.5% now. The focus has now shifted to transmission. However, a robust growth outlook, as reaffirmed by S&P, surplus liquidity in the system and overall supportive monetary policy settings will have a positive impact on the G-sec yield, the official said. S&P expects a strong annual growth rate of 6.8% for India for the next three years, with a 6.5% expansion in FY26. Retail inflation hit an eight-year low of 1.55% in July. Lower inflation will ease the pressure on the RBI to maintain supportive monetary policies in the coming quarters, S&P has said. "(Moreover) The fact that S&P also thinks the US tariff impact will be manageable, given India's relatively less reliance on external trade for growth, should also soothe nerves of investors," said another official. Moreover, monsoon rains have been plentiful, and global crude oil prices have retreated to $67 per barrel after a brief surge in the aftermath of the Israel-Iran conflict, and could stay subdued for the rest of FY26 amid expected steady supply. All these would weigh down the bond yield, officials reckon. 'No supply glut by govt' The government won't flood the market with its securities and private players won't be crowded out, officials told ET recently. The Centre plans to stick to its FY26 gross market borrowing target of ₹14.82 lakh crore to avoid negative surprises, they had said. Moreover, it has sharply hiked the capex allocations for the ministries of railways and road transport & highways in recent years. So, it's not using entities linked to these ministries to garner extra-budgetary resources, reducing pressure on the market. States, too, have been promised ₹1.5 lakh crore in capex loans by the Centre from its budget in FY26. This reduces their market borrowing needs proportionately.

S&P upgrade likely to cut govt borrowing costs: Finmin official
S&P upgrade likely to cut govt borrowing costs: Finmin official

Economic Times

time3 hours ago

  • Economic Times

S&P upgrade likely to cut govt borrowing costs: Finmin official

S&P's upgrade of India's sovereign credit rating after 18 years, driven by economic resilience, may lower government borrowing costs and boost investor confidence. Despite external challenges like US tariffs, India's strong macroeconomic fundamentals and growth outlook are reaffirmed. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: S&P's upgrade of its long-term sovereign credit rating on India after 18 years citing economic resilience can potentially lower the government's borrowing costs, a senior finance ministry official upgrade in rating to 'BBB' from the lowest investment grade of 'BBB-' will add to the investor optimism about the country's strong macroeconomic fundamentals, despite persisting external headwinds, including an extra 50% US tariffs on Indian exports, he yield on 10-year benchmark government securities inched up 10 basis points over the past one month to close at 6.41% on Thursday, but it still remained 45 basis points lower than a year yield has risen in recent weeks over concerns about lower-than-expected direct tax collections, over-supply of papers and fading hope of an interest rate cut in October, according to central bank has trimmed the repo rate by 100 basis points since February to 5.5% now. The focus has now shifted to a robust growth outlook, as reaffirmed by S&P, surplus liquidity in the system and overall supportive monetary policy settings will have a positive impact on the G-sec yield, the official said.S&P expects a strong annual growth rate of 6.8% for India for the next three years, with a 6.5% expansion in inflation hit an eight-year low of 1.55% in July. Lower inflation will ease the pressure on the RBI to maintain supportive monetary policies in the coming quarters, S&P has said."(Moreover) The fact that S&P also thinks the US tariff impact will be manageable, given India's relatively less reliance on external trade for growth, should also soothe nerves of investors," said another monsoon rains have been plentiful, and global crude oil prices have retreated to $67 per barrel after a brief surge in the aftermath of the Israel-Iran conflict, and could stay subdued for the rest of FY26 amid expected steady supply. All these would weigh down the bond yield, officials government won't flood the market with its securities and private players won't be crowded out, officials told ET recently. The Centre plans to stick to its FY26 gross market borrowing target of ₹14.82 lakh crore to avoid negative surprises, they had it has sharply hiked the capex allocations for the ministries of railways and road transport & highways in recent years. So, it's not using entities linked to these ministries to garner extra-budgetary resources, reducing pressure on the too, have been promised ₹1.5 lakh crore in capex loans by the Centre from its budget in FY26. This reduces their market borrowing needs proportionately.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store