Amazon’s drone business struggles amid low demand and regulation issues

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It currently boasts a tiny customer base.

, Amazon drone delivery head David Carbon was quoted as saying that Prime Air had recently kicked off durability and reliability testing, a key federalAlthough this may seem like a promising step forward, the division has actually been struggling to take off as regulations and weak demand interfere with its progress.

In January, a large number of Prime Air workers were let go as part of the largest round of layoffs in Amazon’s history that saw more than 18,000 people axed. In a statement, Maria Boschetti, an Amazon spokesperson, said that the staff cuts and multiple delays experienced by Prime Air haven’t affected its long-term plans for deliveries.

“We’re as excited about it now as we were 10 years ago — but hard things can take time, this is a highly regulated industry, and we’re not immune to changes in the macro environment,” Boschetti said. “We continue to work closely with the FAA, and have a robust testing program and a team of hundreds in place who will continue to meet all regulatory requirements as we move forward and safely bring this service to more customers in more communities.”Prime Air has a small customer base, and demand isn’t exactly soaring.

 

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