Two years ago Amazon announced their plans for its drone delivery service, yesterday the prototype was finally revealed and it looks awesome!
Amazon wants to cut out the third party shipping operations from its business model and is implementing this by using droids. Problem with third party shipping during holiday season is one of the main reasons that Amazon is making this change a priority. In 2013 many customers were left without gifts on Christmas, when third party shipping partners could not deliver due to bad weather.
Amazon is currently testing van deliveries in locations including San Francisco, New York, and London. They have also already implemented its Prime Now service, which offers one-hour and two-hour delivery on certain items. They are also expanding the service to more cities this year and adding food and alcohol deliveries.
The new drone has two propeller systems, one for vertical flight and one for horizontal flight. It can currently carry packages that are up to 5 pounds and it has the capability to fly up to 15 miles from its point of origin. Sadly, this is still just a prototype, Amazon has not released yet when we should be able to see these delivery drones in the air.
What does this mean for the electronic component industry? The development of drones will ultimately impact the supply and demand of certain electronic components on a global level.
From an industry stand point, the introduction of drones to the logistic service is also going to impact the supply chain as a whole, where manufacturers are concerned with just-in-time (JIT) inventory management. Delivering with drones will also reduce the cost and time for ordinary shipping methods. Though it is not determined when the FAA will lift its regulations for drones in logistic services, this is definitely a trend that the electronic industry should be watching.
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