Amazon Prime Air drone delivery service raises questions about scale and cost

by Tiffany Wong, Reporter

The infographic above depicts many key issues with the Amazon Prime Air delivery system. Amazon CEO Jeff Bezos hopes to revolutionize the shipping industry through drone delivery.
Tiffany Wong
The infographic above depicts Amazon’s rise in shipping and outlines many key issues with the Amazon Prime Air delivery system. Amazon CEO Jeff Bezos hopes to revolutionize the shipping industry through drone delivery.

What started out as an idea may soon become a reality – since Amazon’s announcement of experimentation with drone shipments in December 2013, the company has gained more control over the shipment of their products and improved their drones to fit new Federal Aviation Administration regulations.

Amazon’s drone shipping service, also known as Amazon Prime Air, utilizes Octocopter drones to fly packages of less than five pounds straight to customers’ doorsteps. Advertised to be able to ship products in 30 minutes or less, drones can only deliver to places within a ten-mile radius of a participating Amazon order fulfillment center. Currently, coverage is still limited because there are only 72 centers nationwide, five of which are in California.

Amazon CEO Jeff Bezos revealed the company’s drone shipping project in a 2013 interview with CBS News’ 60 Minutes. Estimating that drone shipments will be a service available to customers in four to five years, Bezos predicts that “one day, Prime Air deliveries will be as common as seeing a mail truck.”

With promises of much faster delivery times, Amazon’s drone shipping may seem to benefit both the company and its customers. However, complicated air traffic patterns, the drone shipment restrictions and service costs prevent drone shipping from being a secure and reliable way to receive products from Amazon. While Amazon’s drone system is still in concept stages, drone delivery still has key problems.

Greater drone usage for shipping services will result in more congested air traffic. Drones will now have to compete for airspace with airplanes and other flying objects, while running the risk of hitting another object while in flight. Drone traffic control towers, launchpads and landing sites will be needed for operators to manage drones safely. The drones themselves have been estimated to cost a hefty $50,000.

In addition, shipments delivered by drone must also weigh less than five pounds and fit within the drone’s cargo box. While 86 percent of Amazon products meet this weight requirement, products that are heavier than five pounds will have to be delivered by land instead.

Finally, Amazon will also have to hire competent drone operators, in addition to managing drone traffic control towers, launchpads and landing sites. The cost of building these structures may result in higher shipping prices for Amazon customers. According to R. John Hansman, Professor of Aeronautics and Astronautics at MIT, “they will have to charge a significant premium for this kind of delivery, so the products would need to be worth a $100 to $200 delivery fee for a five-pound or so package.”

The chart above summarizes the various arguments surrounding drone shipping. Although the negative aspects outnumber the positive ones, the drone shipping program may still succeed if costs diminish.
The chart above summarizes the various arguments circling drone shipping. Although the negative aspects outnumber the positive ones, the drone shipping program may still succeed if costs diminish.

Despite the potential of Amazon’s drone shipments, the company’s current model for the drone delivery system will not meet the needs of customers adequately. The problems of managing air traffic, restrictions placed on drone shipments and the cost of funding are all reasons why Amazon Prime Air may not be a viable shipping method for the future.