30-Minute Drone Deliveries Coming Up: FedEx Scrambles to Catch Amazon

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FedEx just announced deliveries 7 days a week. Amazon shoots for 30-minute drone deliveries.

The Wall Street Journal reports FedEx to Deliver Packages 7 Days a Week.

“Online shopping is seven days a week,” FedEx President and Chief Operating Officer Raj Subramaniam said in an interview. “So there is increasing demand from online shoppers and e-commerce shippers for seven-day service.”

The package giant, which only recently added Saturday ground deliveries, plans to offer seven-day residential delivery in the U.S. next year as it seeks to capture more of the e-commerce surge.

Fast Moving Target

What's it all about? Competing with Amazon.

For two years, people could get many items overnight with Amazon Prime. The number of items available for overnight delivery has soared.

FedEx was forced to compete, but Amazon is a fast moving target.

30-Minute Drone Delivery Coming UP

Please consider Amazon’s Drone Delivery Program is “Taking Off”.

Today at Amazon’s MARS Conference (Machine Learning, Automation, Robotics, and Space) in Las Vegas, they unveiled their latest Prime Air drone design.

Amazon has been hard at work building fully electric drones that can fly up to 15 miles and deliver packages under five pounds to customers in less than 30 minutes.

And, with the help of their world-class fulfillment and delivery network, Amazon expects to scale Prime Air both quickly and efficiently, delivering packages via drone to customers within months.

Drone Delivery

https://www.youtube.com/watch?v=3HJtmx5f1Fc&feature=youtu.be

Latest Drone Features

  • Hybrid design can do vertical takeoffs and landings. It can also switch from vertical-mode to airplane mode, and back to vertical mode.
  • It can detect both stationary and moving objects as well automatically avoid power lines.
  • It is independently safe. It will not fly into a wall even if instructed to do so.
  • Sophisticated AI algorithms are trained to detect people and animals from above.
  • Solar power charged. Amazon's vision is to for 50% of all shipments to have net zero emissions by 2030.

Amazon, a Godsend

Every day I see Tweets by people railing against Amazon about pay, about taxes, about putting mom and pop out of business.

It's all good.

The ideal corporate tax rate is zero, so don't blame Amazon.

If Amazon puts mom and pop out of business, that's a good thing too.

Everyone will so get deliveries in hours instead of days. How is this not a good thing?

Standards of Living

Amazon improves standards of living. Competition in general does that as well.

Sorry mom and pop, campaigns to save the local bookstore make no economic sense.

Companies that cannot compete go under, no matter what the business.

We should all cheer Amazon.

US Innovation

Please notice what country produced Amazon, Google, Uber, Microsoft, etc., etc.

Despite serious economic flaws, the US is still the global technology leader.

Why?

EU rules and regulations are staggering. In the name of "fairness" the EU would break up Amazon, Google, and Microsoft.

China lags as well. Command economies that do not have strong property rights or allow freedom of expression will ever beat out large economies that do.

Forget About China

All this talk from Peter Schiff and other US detractors about the death of the dollar, hyperinflation, China overtaking the US, and the US losing the reserve currency is complete silliness.

Wake me up when China floats the yuan, allows freedom of speech, has strong property rights, and has the world's largest bond market.

Until then, US detractors need to stop the nonsense.

Mike "Mish" Shedlock

Comments (24)
No. 1-12
Matt3
Matt3

I wasn't aware that social media allowed free speech. It had looked to me that big tech was making speech less free. Let's quit subsidizing Amazon shipping and let the drones do the job. For the rest of the deliveries, they can use the Tesla self driving vehicles. What could possibly go wrong? I bet they will want some limitations on liability.

hmk
hmk

BTW I had to return a pair of pants, not to Amazon, via fed ex. The shipping costs were $23 , so I took the fedex box to USPS and had it shipped for <$10. I don't see how or why anyone would use fedex, their rates are not competitive with USPS.

Hammeringtruth1
Hammeringtruth1

How many million drones will be needed?

Aaaal
Aaaal

Why does everyone need their item(s) in 30 mins? WTF is this? Domino's pizza?

spectrum9
spectrum9

Another Amazon shipping post?! Mish, I haven't see anything in your posts about why Amazon should be particularly good at shipping, much less better than UPS and Fedex. There is no theoretical advantage to Amazon doing their own shipping. Economies of scale come from horizontal integration, not vertical. e.g.: It makes sense for t-mobile to buy out Sprint. It doesn't make sense for T-mobile to buy out a chip maker, even though chips are used in the phones they sell. Any factual data that Amazon would do it better? Did they hire top talent from UPS or Fedex? Some specific technology advantage you can cite? (A few drones is not a technology advantage) Or is Bezos just an incredibly multifaceted genius?

nic9075
nic9075

For two years, people could get many items overnight with Amazon Prime. The number of items available for overnight delivery has soared}}}

sure and you pay extra for that service.. The post office has also offered express mail delivery & package delivery if you need to ship a package or letter to someone within24 hours..

I think it is called 'express mail' or priority mail express'. It only costs $25 I think to stick letter in envelope than stand in line at the post office (and if you are from NYC seems everything outside of NYC is sullowww, and people move so sullooowllee)..

I think fedex offers the same type of service and both have offered this concept of 'overnight' delivery for I think the past 25-30 years so what is so innovative about being able to receive something from Amazon overnight --do they offer it to prime customers at no extra cost?? NOT

nic9075
nic9075

I thought consumers were so 'tapped out' and millenials had 'record student loan debt''.. The thing is Amazon & Uber are only accessible by using a credit card (and with that paying interest of 15% - 25% APR). Does everyone really need the newest Iphone and Macbook pro every year (each costs double what it did 10 years ago) or pay $150 for a pair of jeans that are worn once (and lose their value faster than a new car)? How do people suddenly have all this disposable income where the median home price is now 5 - 10 times the median income in most cities in the USA and if you rent paying $2,500 for a one bedroom apartment in the suburbs where there is no public transport to speak of is the new normal

Six000mileyear
Six000mileyear

And if you can wait a week, your items will be sent free.

Seb
Seb

People pay for convenience and expediency. Never underestimate that or you’ll lose business.

Snow_Dog
Snow_Dog

“Companies that cannot compete go under, no matter what the business.”

Amazon didn’t post a profit for many years and it never went under. On the contrary, it grew from being a bookseller to becoming the e-trailer of everything.

It helped that it was able to commandeer the USPS to deliver its goods for cheaper rates than their competitors pay.

KidHorn
KidHorn

Another technology that, every year, is right around the corner. Self driving cars. Drone delivery. A year from now, I'll read the exact same articles. Any day now, we'll all be flying around with jet packs.

awc13
awc13

I noticed that recently a lot of my amazon orders come in 24 hours now. I ordered some zwave light switches on thursday thinking they would arrice saturday (didn't really pay attention to the shipping date at order time) and they arrived friday.