Same-day delivery is a common service that retail brands offer throughout the United States. Partnerships with delivery services including DoorDash, Uber Eats, Postmates, and more allow consumers to receive online orders within hours. This service is especially convenient for groceries, toiletries, prescriptions, and other necessities.
However, not all same-day delivery is equal, and on-time delivery cannot be guaranteed. A recent article on DoorDash’s blog cites major metropolitan areas and college towns as ideal markets for Dashers because of high population density, better tipping, and busy students and employees who are less likely to cook. Less population-dense areas have fewer drivers because orders are less frequent. This creates a shortage of drivers, resulting in retailers not offering same-day deliveries in those areas. In contrast, cities and metropolises often have heavier traffic, prolonging deliveries.
To combat these challenges, many retailers have begun partnering with drone delivery companies to offer same-day delivery via drone. Amazon founder Jeff Bezos announced in 2013 that he planned to deliver toilet paper, socks, and tools via drones by 2015. While Amazon was unable to meet that goal, Flirtey (now SkyDrop) partnered with NASA to make the first Federal Aviation Administration (FAA)-approved drone delivery in the U.S. in 2015. Amazon launched its first drone delivery programs in 2022 in College Station, TX, and Lockeford, CA, and they plan to launch in the Phoenix metropolitan area later this year.
As companies begin to deploy their drones, the question arises: why? James Campbell, Ph.D., a professor of Logistics, Supply Chain and Operations Management, Location Modeling, and Business Analytics at the University of Missouri – St. Louis argues that drone delivery offers a range of possible benefits, especially reduced reliance on cars and trucks. This would reduce emissions per delivery and shorten delivery times by circumventing traffic.
Dr. Campbell also argues that drones could increase delivery access to rural or difficult-to-reach areas because they “don’t need infrastructure.” They do not require paved roads, can land directly on a front porch or balcony, and can travel 50 miles in half an hour. Beyond providing quality-of-life services like takeout, this could be especially useful in a medical emergency or disaster response.
Many consumers have raised concerns, despite the potential benefits. To safely navigate, drones include cameras and GPS and are supervised by trained pilots. These features are necessary for the drone to function, but the surveys have revealed concerns regarding personal privacy and national security. In response, Wing, a subsidiary of Alphabet and a prominent drone service, claims their drones use low-resolution cameras without a live feed to their pilots.
However, the largest challenge to increasing drone delivery may be federal regulations. It costs $13.50 to make a single delivery compared with $1.90 per package via delivery van. Consulting firm McKinsey attributes this cost to regulations requiring each drone to “remain within sight of a human employee” at all times. If each employee could monitor 20 drones at once, the cost per package would drop to $1.80.
Current federal regulations may be strict, but the FAA has shown signs of flexibility. They recently granted Amazon a waiver for their visual line of sight requirement, which requires drones to be operated within the pilot’s direct, unaided line of sight. However, many deliveries require drones to fly beyond the visual line of sight (BVLOS) and pilots to monitor them remotely. The waiver allows Amazon to widen its delivery radius. DoorDash recently announced its partnership with Wing, indicating they may have received a similar waiver.
Drones show promise in overcoming many of the problems presented by ground delivery. Despite concerns regarding privacy, cost, and regulations, evolving FAA regulations and assurance from Wing suggest a strong future for drones and other semi-autonomous deliveries. The integration of these drones marks a significant advancement in the transportation and delivery ecosystem, and the potential benefits for emergency response and prescription medicine access cannot be overlooked.
Written by Grace Mower, Public Policy Intern
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization. An innovative think tank, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, energy, infrastructure, innovation, technology, and transportation.