Google Inc (GOOGL) & Amazon.com, Inc. (AMZN) Can Reinvent Distribution with Drone Delivery

Amazon.com, Inc. (NASDAQ:AMZN) and more recently Google Inc (NASDAQ:GOOGL) have taken up on a challenge to deliver products purchased online to the customer’s door in around thirty minutes or even less with the help of the drones. In a segment on CNBC, James Temple, re/code senior editor, has said that this could be a turning point in the delivery business and possibly posing a serious threat to traditional retailers.

Amazon.com (NASDAQ:AMZN), The Washington Post (NYSE:WPO), Berkshire Hathaway Inc. (NYSE:BRK.A), Apple Inc. (NASDAQ:AAPL)

“[...] The biggest challenge that has remained between physical and online retail is the promise of immediate gratification and if you get drones to the point where they can ship products in half an hour, [...] that really does close the gap between buying something at Amazon.com, Inc. (NASDAQ:AMZN) and drive it to Wal-Mart to get it that very day,” argues Temple.

A similar promise has been made by tech companies, including Amazon.com, Inc. (NASDAQ:AMZN), 15 years ago during the tech-boom, but all of them dropped the idea as the bubble burst. Now it is different, suggests Temple. While in the 2000’s the companies tried to make instant deliveries by hiring a lot of staff which proved to be uneconomical, now there is a new drone technology that could prove to be much cheaper and more efficient.

“[...] I am comparing it to the Internet vs. newspapers; it makes more sense to be able to deliver a product, as the crow flies, directly across town to exactly where it needs to be without having it idled in traffic and drop it precisely where it needs to be [...],” adds Temple.

However, there are still a lot of technical and regulatory issues to be fixed before we can see the new technology at work. For instance, Google Inc (NASDAQ:GOOGL) is making its tests in Australia, because in the US, Federal Aviation Administration does not allow commercial operators to fly unmanned vehicles – drones. Amazon.com, Inc. (NASDAQ:AMZN) has asked the government to be granted an exemption, but has not received yet an official response.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!