Amazon delivery drones: how the sky could be the limit for market dominance

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The company's current dominance largely relies on its superior logistical operation: it can deliver quickly, cheaply and reliably everywhere.

Amazon’s latest plan to use drones to deliver packages in the UK by the end of 2024 is essentially a relaunch. It was ten years ago that the company’s founder Jeff Bezos first announced it would fly individual packages through the sky.

Aside from these key factors, Amazon may well have been inspired by other companies in the sector. The most obvious example is drone delivery of vital medical supplies. Amazon’s solution to this is likely to be the same one it has used so successfully over the last two decades: increasing the scale of its operation. After all, at the start of the century, many wondered how e-commerce could ever be profitable. Now, millions of people buy from Amazon, and that vast number of customers is key to its success.

The higher they fly, the harder they fall Cities will not simply let commercial drones take to the skies – at least not without charging for the nuisance they generate. They will either ban drones in densely populated areas, or seek further regulation. ADVERTISEMENT CONTINUE READING BELOW If regulation is the route taken, a new hurdle arises which is similar to the allocation of radio waves or mobile phone network licenses – that there will only be enough space for a few operators .

 

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