Several years ago, Jeff Bezos boldly promised that drone delivery would be ready nearly any time now. His timing prediction was off by quite a lot, but the underlying idea remains a priority for Amazon, and it recently passed a major hurdle in its continued efforts to achieve that goal.

Specifically, Amazon recently received approval from the U.S. Federal Aviation Administration (FAA), allowing it to develop and establish a “fleet” of drones for package delivery. Approval does not mean the small machines will be filling the skies tomorrow. But it does allow Amazon to test its existing designs of drones that can drop a package at an individual consumer’s doorstep, nearly immediately after the order was placed.

Several other companies also have such approval, including UPS and a delivery-specific company called Wing. Both of those have run limited trials as well, mainly in less populated areas. But the competition clearly is fierce, as each provider wants to be the first to achieve a viable solution that will allow rapid, efficient, automated delivery operations.

The hurdles that remain are notable though. For example, the FAA still would have to develop a means to track the potentially millions of drones that might be flying through the air. It also needs to determine what rules and standards it will require for heavily populated areas, unlike the relatively easier rules in place for unpopulated geographies. Distinct air traffic control systems also must be developed. The current systems, created to control larger airplanes and jets, do not have the capabilities to identify, track, and monitor the smaller devices.

Some of those issues and concerns already are being addressed, at least partially, by Amazon’s designs. The most recent drone it has released features sensing technology that enables it to avoid collisions with other objects. These devices can complete an approximately 15-mile round-trip journey, which should limit the chances of a loss of power before they return to the delivery hub. That is, it appears that Amazon knows its next steps, following its achievement of this approval goal, and is on its way to overcoming the next hurdles too.

Discussion Questions:

1. What does FAA approval mean for Amazon?
2. What companies appear best positioned to gain a dominant position in the drone delivery market?

Source: Sebastian Herrera and Andy Pasztor, “Amazon Gets U.S. Approval for Drone Fleet, a Package-Delivery Milestone,” The Wall Street Journal, August 31, 2020; Concepcion de Leon, “Drone Delivery? Amazon Moves Closer with F.A.A. Approval,” The New York Times, August 31, 2020