Amazon Drones: Delivery in 30 Minutes for $1

Unmanned Cargo Delivery Concept – Chronicle 04

Amazon Drones Could Deliver Packages for Just $1, Study Suggests (April 10, 2014)

(Editor’s Note: Making the business case for implementing a commercial delivery drone system)

What the Article Chronicles:

New York based ARK Investment Management has quantified how much a same-day drone delivery would cost compared with delivery truck and couriers. Given the 400 million annual shipments Amazon makes to US customers, an initial investment of $130 million to cover drone cost and support infrastructure and a budget of $350 million annually to cover operating expenses, Amazon would break even after the first year of operations. As the chart below shows, a similarly sized packaged would cost 8-13 times more for much longer delivery times.

Although payload would be limited to 5 pounds (2.3 kg), this is of no consequence as approximately 86 % of all orders shipped by Amazon weigh less than this.

Official UGV / Drone Name:

Amazon Prime Air

Companies Involved:

  • ARK Investment Management
  • Amazon

What are your thoughts on ARK’s cost forecast for unmanned cargo delivery drones? Comment below!

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