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Amazon Drones


G+_Jonathan Mayer
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Amazon Drones

 

The Amazon drone story is all over the place.  It sounds like a futuristic dream and to a point thats what it is.  It can't be done right now, but in 5 or 6 years its possible.  Its definitely a PR stunt to announce  this service this early and on a National Magazine show, but Amazon is going to need that good PR to get regulatory approval.

 

Amazon is playing a long game with this.  They paid over $918 million in shipping cost while only making $360 million in shipping fees last quarter, a major hurdle for profits.  If they could find a way to reduce that expense, profits will rise.  

 

The long game of the drones would fix this in two ways.  It would massively reduce the cost per package shipped and it would increase the shipping fees collected.   (30 minute delivery $7 with prime or something like that) 

 

At first the program will be extremely limited but with time the range of the drones will increase, imagine 100 mile range, and more and more amazon distribution centers will open.  In 10 years I expect that drone deliveries will be no more crazy then next day delivery is today.?

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