Big News for Retail Giants Walmart and Amazon
According to supplychain247(dot)com and sdcexec(dot)com, it has been a big couple of weeks in the world of shipping and logistics with news updates from two of the world’s largest retailers, Amazon and Walmart. Both companies plan on expanding their shipping services to customers in order to compete for the title of “largest retailer,” a position ‘big box’ Walmart currently holds.
Traditionally, Walmart’s success has been based on offering “everyday low prices” in its brick and mortar locations. While the retailer “remains one of the most profitable companies in the world” it can no longer ignore the success and expansion of online retailers such as Amazon.
In order to compete in the e-commerce arena, Walmart confirmed that it will soon launch “ShippingPass”, its new online subscription program. ShippingPass offers subscribers free shipping on all items, and three day shipping on approximately one million items, on all orders placed before noon. A ShippingPass subscription comes at a cost of $50 a year. While Walmart is introducing this new customer-facing shipping subscription program, Amazon may just be re-inventing the way goods themselves are shipped—a logistics move.
Amazon has created a proposal that segments the U.S. airspace for unmanned delivery aircraft. Amazon’s new proposal features a “superhighway in the sky” dividing airspace based upon the safety features the drone has, the reason for its flight, and the distance it has to travel.
Airspace under 200 feet is reserved for low speed, short distance, localized traffic. Flying at this altitude does not require the latest and best collision avoidance technology. While airspace under 200 feet would act as a “service road,” the air space between 200 and 400 feet would be the “highway”. Drones capable of flying at this altitude would be traveling longer distances and higher speeds. These drones need to be able to fly autonomously, communicate with each other and be equipped with “the most sophisticated sense-and-avoid technologies,” especially if flying through urban areas, so that they can sense birds and buildings. The airspace above 500 feet is only available for airplanes, and the space between 400-500 feet will be left empty to serve as a buffer. Amazon’s new proposal enhances technology for any and all drones being operated within the U.S. and would save the retailer significant shipping costs and time.
How feasible are Amazon’s plans? Will Walmart’s Shipping Pass move the needle?
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