Amazon is taking its drone delivery plans to a new level. The company wants to expand the service to nearly 500 US cities by year-end.The move could give millions of customers faster access to small packages. Amazon says some orders could arrive in just 30 minutes. However, the drones can only carry packages weighing up to five pounds. The expansion will cover suburban areas around cities like Chicago, Atlanta, Cleveland and Boise.
Amazon currently operates drone delivery at 11 sites across seven US states. Hundreds of thousands of packages have already reached customers this year. Even so, drones still handle only a tiny share of Amazon’s massive delivery network. Trees, pools and other obstacles can also make safe drop-offs difficult.
Meanwhile, Amazon faces stiff competition from Walmart and other delivery companies. The service will be free for Prime members spending more than $50. Smaller Prime orders will attract a $2.99 fee. Non-Prime customers will pay $4.99 for drone delivery. Retail analyst Sucharita Kodali said,
“It’s still an experiment. It’s still in test and learn mode.”
She believes urgent, lightweight items could make the service more useful.
Amazon is also working with the Federal Aviation Administration to expand drone operations. The company already has approval to fly beyond the pilot’s direct line of sight. CEO Andy Jassy says Prime Air could reach 30 million customers by year-end. Amazon also expects to deliver 500 million packages by drone before the end of the decade.
The company still has hurdles to overcome. Noise complaints, safety rules and local regulations could slow expansion. Nevertheless, Amazon is betting that drones can make delivery faster, especially when customers need small items urgently.
