Pandemic-fueled innovation: an overview of recent drone delivery breakthroughs

We’ve written previously about how the pandemic has accelerated the development of drone solutions for contact-free delivery, surveillance, enforcement, and hygiene applications.

We’ve gone so far as to suggest that progress in drone medical delivery solutions might be quickly followed by progress in retail delivery solutions. Over the past several weeks, we’ve seem to be seeing this play out, with multiple major retailers reaching new milestones in their drone delivery programs and an uptick in public support for drone delivery.

In this article, I’ll summarize these exciting developments.

An uptick in demand and regulatory cooperation

Before COVID-19, the research firm MarketsandMarkets estimated that drone delivery (both air and ground-based) would generate revenue of around $800M in 2020.

More recently, the firm has updated those estimates to $1 billion and has revised its forecast for 2022 from $1.6 to $2.2 billion. According to the Economist, many other analysts agree with these estimates.

On top of this, regulators have been more flexible than ever in granting exemptions and authorizations for drone delivery programs. For instance, in Canada, authorities have given authorization to a coalition of companies who are using drones to safely supply the remote Beausoleil First Nation and other First Nations.

Similarly, in April, the U.S. Federal Aviation Administration granted exemptions to its commercial drone prohibitions to 30 companies. And in March, the UK, government allocated millions to support the development of drone delivery solutions that would serve the Isle of Wight during the pandemic. 

Moving past these general trends, let’s take a look at some “success stories” about global leaders in retail that seem to be accelerating their delivery programs during these challenging times.

Amazon

On Aug. 29, Amazon finally received federal approval to operate its fleet of Prime Air delivery drones. According to the FAA, the approval will give Amazon broad privileges to “safely and efficiently deliver packages to customers.”

While the Prime Air fleet isn’t ready to immediately deploy drone deliveries at scale, representatives say that it is actively flying and testing the technology.

Walmart

On Sept. 9, Walmart launched a pilot project which will focus on delivering select grocery and household essential items from Walmart stores using the Israeli firm Flytrex’s automated drones in Fayetteville, N.C. 

Representatives at the world’s biggest retailer have been tight-lipped on details of the program, so it’s not clear how many drones are involved in the pilot and what checks (if any) customers need to make before receiving a delivery.

That said, Flyrex boasts that its delivery drones are the optimal solution for suburb environments, so it would follow that remote customers or city-dwellers might not be the best candidates to test the service at this stage of development.

While this type of delivery solution has been tested since 2015, and thus cannot be fully attributed to the pandemic, there are a few use cases that Walmart seems to have launched directly in response to COVID-19.

On Sept. 22, Walmart announced a partnership with Quest Diagnostics and DroneUp, whereby it would perform deliveries of COVID-19 test collection kits in North Las Vegas (in September) and Cheektowaga, New York (in early October.)

The program will serve eligible patients who live in a single-family residence within a 1-mile radius of the designated Supercenters in North Las Vegas and Cheektowaga. And given that Walmart owns the UK supermarket chain Asda, it has been suggested that the solutions could expand to the UK. 

Beyond that, according to Tom Ward, Walmart’s senior vice president of consumer products, Walmart hopes that drone delivery of self-collection kits “will shape contactless testing capabilities on a larger scale and continue to bolster the innovative ways Walmart plans to use drone delivery in the future.” 

Walgreens and Wing

Walgreens and Wing, (owned by Alphabet, Google’s parent company), have been partnering since September 2019 to test “store to door” delivery of products via drone.

As part of this partnership, Wing has been delivering “health and wellness, food and beverage and convenience items” to Walgreens customers in Christiansburg, Va. 

Once the pandemic hit, the company expanded their offering to meet the residents’ mounting needs. Their offerings now include more kid-friendly products like crayons, markers and games; food staples such as pasta, canned soup and mac and cheese; and household cleaning supplies such as facial tissue and, you guessed it, toilet paper.

For Christiansburg residents, the drone delivery service had already been a novelty, but many families reported that once the pandemic hit, it became a source of entertainment, inspiration, and distraction for antsy kids and worried parents alike.

Some families reported ordering a weekly lunch from Walgreens, and others said they ordered things they didn’t really need simply for an excuse to watch a drone come to their house. 

Anecdotes aside, Wing reports that its drone delivery orders in Virginia and Australia rose precipitously when stay-at-home orders were put in place in March and April. Since Wing has been met with privacy concerns and noise complaints by certain residents in Canberra, Australia, one of its first test sites, the rapid increase in demand suggests that the company is finally winning the public over there.

Tesco and Manna Aero

Meanwhile Tesco, the UK’s biggest retailer, is working with Manna, a drone delivery startup based in Dublin, Ireland, to kick off a six-month drone delivery trial starting in October .

The trial will consist of delivering “small baskets” of essentials from its Oranmore store in Co Galway, Ireland, where Manna has a license to operate. Ultimately, Tesco representatives claim that the aim is to develop the capability of delivering these small baskets to customers within 30 minutes to an hour of ordering, a capability which the company thinks will expand their reach to include potential customers for whom getting to the store is inconvenient or difficult.

Manna, for its part, had planned a takeaway food delivery trial in March but changed its focus to medicines during the coronavirus pandemic. Since April, it has been working with the Health Service Executive to deliver medicines and other essential supplies to vulnerable people in the small rural town of Moneygall.

The Path Forward

There are two key mechanisms through which the pandemic seems to be accelerating the development and deployment of drone delivery solutions. 

First, because the pandemic has made contactless delivery a necessity, not just a nice-to-have feature, it is leading to the resolution (or at least temporary suspension) of technical and regulatory blockers to progress. 

Second, the pandemic is providing a fantastic PR opportunity to retailers that want to promote their drone delivery solutions and develop goodwill with the public.

By accelerating the development and social acceptance of drone delivery services, the pandemic seems to be helping retailers, regulators, and drone solutions providers to kick drone delivery up a notch.

Hopefully, they can maintain momentum once the pandemic is over.

Miriam Hinthorn - Contributing Author

Miriam Hinthorn - Contributing Author

Miriam Hinthorn is an experienced management professional who is currently pursuing her master’s in Data, Economics, and Development Policy at MIT while serving as principal consultant at Consult92.

Miriam developed a love for UAS technology when she served as operations manager at Consortiq. Today, having completed over 30 successful projects in 10 countries, she loves solving a wide variety of logistical, technical, and cultural challenges for her clients so that they can focus on what care about most.

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Drone Delivery Just Around the Corner

The UAV industry has rapidly grown in the last decade.

Commercial drone capabilities, such as LiDAR, seemed like science fiction just ten years ago. Today, however, collecting aerial data and generating a range of useful products has become commonplace.

Significant advancements in design, engineering, and software coding have given drones the power to accomplish much in the last few years. That said, there are some areas in which the platform’s full potential is yet unrealized.

One such application is drone delivery.

 

 

Drone Delivery & Logistics

Professionals in the logistics world spend a great deal of their time on the “last mile problem.”

The digital age allows for many services and products to be accessible instantaneously. Calls, emails, videos, and images are literally at our fingertips whenever we need them. And yet, even with the many advances in technology characteristic of modern societies, this is still not the case for most physical goods.

Once items are shipped from a business to a customer, the logistics of getting those items into often dense population areas efficiently is what the last mile problem refers to. The most important factors in last mile problem solving are route density and drop size.

Route density is the number of drop-off points on a given delivery route. Drop size is the amount of items that can be delivered at each stop.

Each delivery cost will decrease with more drop offs, and with more items delivered per drop off. Many of the largest companies in the world are looking towards drones to help solve this problem.

Google, Amazon, Uber, UPS, DHL, FedEx, and even Domino’s pizza are invested in UAV technology. In fact, one of the first drone deliveries in the world was in 2016 when a Dominos pizza franchise in New Zealand delivered the first pizza via drone. These companies have been very public about the benefits drones potentially bring to their respective businesses and customers.

 

UAS Delivery Regulations & Limitations

There are three reasons why drones have yet to fill the skies with packages and pizzas.

Government regulations, along with poor performance in route density and drop size, are challenges holding back large-scale UAV delivery.

Government regulations that hinder UAV expansion in this area primarily pertain to limitations on commercial drone flights.

Most countries limit commercial drone pilots to flying within the visual line of sight. Regulations also require a human pilot to have control of the drone during flight. Such legal conditions make large-scale drone delivery challenging, if not impossible.

Why Companies Are Still Investing

Fortunately, many of the world’s airspace agencies, such as the FAA and the CAA, are slowly working toward updating these restrictions.

RELATED ARTICLE: EUROPEAN UAS REGULATION FURTHER DELAYED

Several countries currently have trial programs studying how to better manage UAVs in their airspace. Experts in the aviation field believe it is only a matter of time before drones are allowed to autonomously operate around the world.

For route density and drop size, even large operations like Amazon are testing drones that can only deliver one package at a time with a maximum weight of no more than ten pounds. Limitations such as these would make it seem as if drone delivery services will never get off the ground or compete with current methods.

So, why are so many companies still investing heavily in the potential of the service?

Like Amazon, some of the largest investors in the space see these traditional last mile issues as less critical to drones. For example, Amazon’s CEO Jeff Bezos has pointed out the large number of people who live within ten miles of an Amazon fulfillment center, and that 86% of all products purchased on the site are under five pounds. Other expects believe 44% of all Americans live near fulfillment centers.

If these numbers are true, once government regulations ease up, the reality of 30-minute drone deliveries may be entirely possible.

Incorporating Drone Delivery

It is highly likely that, within the next few years, we will see the full scale of drone delivery services begin to take shape.

If you’re with a company that has problems with last mile challenges, you should take a serious look now at how drone delivery service can integrate into the current and future operations.

As regulations ease and technology continues to improve, drones may become the most efficient means of product delivery.

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About Consortiq

Consortiq is a global market leader of custom drone solutions. Our employees are driven by a mission to help corporations and state organisations leverage drone technology to accelerate progress and achieve the success they desire. At Consortiq, we base our solutions on intensive quantitative and qualitative research, hard facts, and deep subject matter expertise. As a talented group of drone and manned aircraft pilots, software engineers, defense consultants, and former air traffic control professionals, Consortiq’s employees understand the intricacies of aerial platforms and are able to provide a wide range of nuanced, effective solutions. 

We have a strong track record of providing training, logistical operations planning, fleet management software, risk mitigation, and legal/regulatory services, to clients in the media, public infrastructure, and public safety industries in Europe, North America, and the Middle East.

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David Daly - Contributing Author

David Daly - Contributing Author

David Daly, is an award-winning photographer/writer and licensed (FAA) Commercial sUAS pilot. A graduate of the United States Naval Academy, David is a former Marine Corps officer with a BS in Oceanography and has earned his MBA from the University of Redlands. David has worked for Fortune 100 companies and has a background in aerospace, construction, military/defense, real estate, and technology.

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