Amazon.com, Inc. (NASDAQ:AMZN)’s interest in making use of drones to fulfill customer deliveries may bring about the era of deliveries costing just $1.
Matt Miller, in a segment of In The Loop on Bloomberg, says that a new study has found that delivery costs will be dramatically reduced if Amazon.com, Inc. (NASDAQ:AMZN) is successful in its plan to use unmanned drones for deliveries.
“Today’s ‘Bloomberg Big Number’ [is] $1. Well it’s a ‘small number’ I guess but it could mean a big change in deliver cost. A new study has found that if Amazon goes ahead with its plan to use drones, cross-town same-day deliveries of packages could fall to as low as $1 as trucks and couriers are replaced,” Miller says.
Amazon.com, Inc. (NASDAQ:AMZN) was recently granted another permit by the United States Federal Aviation Administration (FAA) to test its drones which the Internet commerce giant plans to use to more efficiently deliver merchandize to buyers.
In a report, it is said that the drones will zip across the sky as high as 400 feet and at speeds of up to 100 miles per hour.
Meanwhile Miller also notes that the study has found that drones will also aid the e-commerce juggernaut in reducing deliver times.
“The report also found that delivery times will be dramatically reduced to just 30 minutes. Amazon has been lobbying the government for permission to test drones here in the U.S. and was last week granted a waiver finally to do so,” Miller adds.
It is important to note, however, that Amazon.com, Inc. (NASDAQ:AMZN) has not had a particularly easy time convincing the U.S. government to release permits for drone testing in a short span of time. The company has been openly criticizing the government, particularly the FAA, for its slow process.
It was, however, revealed late last month that Canada appears to be more open to the company testing its drones in its airspace. The country has reportedly given Amazon “carte blanche” for its drone experiments at a location in Vancouver, British Columbia just about 2,000 feet from the U.S. border.
David Gallo’s Valinor Management LLC owned 268,130 Amazon.com, Inc. (NASDAQ:AMZN) shares by the end of 2014.
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