Drones May Revolutionize Ecommerce Package Delivery - If They Overcome Obstacles

Drone delivery is an emergent industry that’s at once promising and riddled with setbacks. According to McKinsey, the US drone delivery industry grew from $40 million in 2012 to $1 billion in 2017. This is despite the fact that it’s currently illegal to fly commercial drones above people and within U.S. airspace, per Federal Aviation Administration (FAA) regulations.

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After abandoning air express deliveries, FedEx will also stop ground deliveries for Amazon

FedEx is bringing its ground shipping contract with Amazon to an end. Despite working together for years on ground and air deliveries, Amazon is now building its own delivery network.  Amazon’s go-it-alone strategy is the main reason why partners such as FedEx are moving away. Over the years, Amazon has shown its intention to compete with the leading players in the logistics industry. This means that it will become a direct competitor to FedEx in the coming days. In fact, Amazon is now building its infrastructure which includes cargo planes, trucks and is also investing in local delivery drivers. The move by Amazon to compete directly with its former business partner is evidence of tension that has been building up between the two long-time partners.

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Drones Are Becoming Part of the Logistics Industry

For decades, the logistics industry has been lagging behind in the adoption of technology in service provision. However, this has changed significantly over the past few years as a result of the increased adoption of various technologies most of which are aimed at increasing competitiveness and enhancing the provision of services.

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