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Amazon Logistics Services

New Details Surface About Amazon’s Drone Delivery Program In An Interview With Paul Misener

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Last year, Amazon announced its plan of implementing a drone delivery program, which the company considers as an innovative way of delivering packages to its customers. The company is said to be working with aeronautical engineers, roboticists, and a former NASA astronaut to make this program a reality. Amazon has released a video last month, showing a prototype of an automated drone that shares features of both helicopters and airplanes.

David Pogue of Yahoo Tech, revealed new details about the e-commerce giant’s drone delivery program from his interview with Paul Misener, Amazon’s Vice President for Global Public Policy.

The following are the details discussed during the interview:

  • The drone delivery program is part of Amazon’s Prime Air delivery services that would deliver packages, weighing about 55 lbs., to customers within 30 minutes.
  • Amazon will be using different kinds of drones designed for different kinds of delivery circumstances.
  • The drones are highly automated, which uses a send-and-avoid technology.
  • To prevent drones from interfering with air travel, Amazon will create a certain kind of airspace that would keep the drones separated from the aircrafts. There would be a no-fly zone between 400 and 500 feet. The delivery drones’ transit zone would be between 200 and 400 feet.
  • Amazon hopes to first implement this program in the United States, however, FAA still doesn’t have regulations in place.

Amazon is anticipating a lot of challenges in making this radical idea a reality. Can this new way of delivering packages become successful?

To find out more details about Amazon’s drone delivery program, you can read the transcript here: https://www.yahoo.com/tech/exclusive-amazon-reveals-details-about-1343951725436982.html.

Amazon Logistics Services

Amazon Going Head to Head With UPS, FedEx and DHL Abroad

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According to the Seattle Times, e-commerce giant Amazon is entering the package-delivery market, and within several weeks, it will be competing directly with UPS, FedEx and DHL. Amazon is entering this space by way of acquisition of a French company named Colis Privé. This move is part of a larger, growing investment in numerous companies in the logistics industry, including a U.K. parcel delivery company – Yodel, for example.

With the opportunity to disrupt the market, what makes this investment so intriguing is that Amazon “may be developing a delivery service that meets more than its own shipping needs. He [Robert W. Baird & Co.] expects Amazon to ultimately offer any excess cargo capacity it has to other companies looking to transport goods.” These services would be open for use to even Amazon’s competitors.

The reason Amazon is going in this direction? Making money by improving infrastructure and then rolling it out as a service. The article explains that what would be considered as an expense right now can effectively be turned into a profit center. The additional profits can help drive competitive rates in its retail business, making them more competitive. Clearly Amazon’s ability to look at its entire portfolio strategically is one of its core strengths.

Interestingly, while FedEx has not publicly shown a lot of concern about this potential issue, UPS has been much more forthcoming and admits that there could be conflict ahead. We’ll have to see what happens in 2016.

Original Source:

http://www.seattletimes.com/business/amazon/amazons-delivery-ambitions-take-on-industry-giants/