“Drone hives” plan by Amazon for local deliveries ?

An article in USA Today (June 23, 2017) describes a patent awarded to Amazon that describes multi-story warehouses described as drone towers located close to cities. The patent describes these warehouses as locations where packages might be stored prior to customer delivery. Will such drone driven deliveries enable Amazon to reduce their reliance on package carriers and increase delivery flexibility ?  Can one imagine drones doing both deliveries and pick up of returns ? Would you expect drone to be more cost competitive in rural or urban areas ?

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About aviyer2010

Professor
This entry was posted in Capacity, consumer, Cost, delivery, logistics, Supply Chain Issues and tagged , , . Bookmark the permalink.

One Response to “Drone hives” plan by Amazon for local deliveries ?

  1. Kyle Harshbarger says:

    The best argument is for a medium-density area, and this is due to feasibility and economy. Low-density areas do not have large enough demand to justify drones over their traditional ground delivery. High-density areas lack landing space for the drones. Medium-density areas work because of the accessibility of are to land and enough people to justify the overhead investment.

    The other interesting question is whether operating costs justify point-to-point delivery instead of milk routes. We need to know much more about that.

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