Drone Delivery Was Supposed to be the Future. What Went Wrong?
Summary
TLDRIn 2013, Amazon ignited excitement with the vision of drone delivery revolutionizing logistics. Despite initial hype, drone delivery has struggled to take off due to technological, legal, and practical challenges. Companies like Amazon and DHL have halted projects, but niche applications, particularly in medical supply delivery, show promise. Consumer preference for cost and reliability over novelty, along with competition from established delivery services, has limited drone delivery's widespread adoption.
Takeaways
- đ In 2013, Jeff Bezos announced Amazon's drone delivery project, promising a future where autonomous drones would revolutionize package delivery within 30 minutes.
- đŞď¸ The concept of drone delivery sparked widespread excitement and debate, with many envisioning a near future where drones would be a common sight in the sky.
- đď¸ Companies like Zipline, SkyDrop, and Google's Project Wing began testing drone deliveries, while major couriers like DHL, UPS, and FedEx explored partnerships to solve last-mile delivery challenges.
- đ Despite the initial hype, by 2022 drone deliveries had not become mainstream, with only a tiny fraction of the population experiencing this service.
- đ Amazon's Prime Air faced setbacks, including office closures and staff layoffs, with reports of mismanagement and a lack of clear direction.
- đŤ Legal and safety restrictions, such as FAA regulations and the need for safe landing zones, have limited the widespread adoption of drone deliveries.
- đ The 'last foot problem'âensuring safe and precise package delivery to a specific locationâhas proven to be a significant challenge for drone technology.
- đ Geographic and infrastructural limitations, such as harsh weather conditions, dense urban areas, and restricted airspaces, have further constrained the feasibility of drone delivery services.
- đ Consumer surveys indicate that most people are satisfied with current delivery options and are not willing to pay more for the novelty of drone delivery.
- đ´ Low-tech solutions like food delivery apps have grown rapidly, offering quick and cost-effective services that meet consumer needs without the complexities of drone operations.
- đĄ Despite the current challenges, niche applications for drone delivery, such as medical supply deliveries in remote areas by Zipline, show potential for the technology's future growth and adaptation.
Q & A
What was Jeff Bezos' vision for drone delivery in 2013?
-In 2013, Jeff Bezos envisioned a future where autonomous drones would be used for delivery, promising to revolutionize the industry by delivering packages within 30 minutes of ordering.
How did the initial response to drone delivery technology impact the industry?
-The initial response to drone delivery technology was highly enthusiastic, with headlines grabbing attention and sparking debates over its potential disruptive impact, leading to a race among companies to bring drone delivery to market.
What were some of the early drone delivery projects mentioned in the script?
-Some early drone delivery projects included Zipline delivering medical supplies in Rwanda, SkyDrop delivering a 7-Eleven slurpee and a Dominos pizza, and Googleâs Project Wing air-dropping burritos.
What challenges have drone delivery services faced since their introduction?
-Drone delivery services have faced numerous challenges including legal restrictions, technological hurdles, public distrust, and practical limitations such as the 'last foot problem' of safely delivering packages to the ground.
Why did Amazon close its Prime Air offices in the UK in 2021?
-Amazon closed its Prime Air offices in the UK due to issues such as mismanagement and disarray, as reported by former employees, which led to a halt in the drone delivery project's progress.
What is the 'last foot problem' in drone delivery?
-The 'last foot problem' refers to the challenge of safely and accurately delivering a package from a drone to the ground without causing damage or injury, which has proven to be more difficult than anticipated.
How have some companies addressed the 'last foot problem'?
-Companies like Zipline, Matternet, and Wingcopter have addressed the 'last foot problem' by using methods such as dropping payloads with parachutes or lowering them with cords from a hovering drone.
What is the current state of drone delivery technology in 2022 according to the script?
-As of 2022, drone delivery technology has not reached the widespread adoption initially predicted. It remains largely in the proof-of-concept phase, with only a small fraction of the population having access to such services.
Why have consumers been slow to adopt drone delivery services?
-Consumers have been slow to adopt drone delivery services due to concerns about reliability, cost, and potential job loss, as well as the fact that they are content with existing delivery options that are quick and cost-efficient.
What alternative solutions have emerged to address the challenges faced by drone delivery?
-Alternative solutions to drone delivery include ground-based autonomous and semi-autonomous robotics, which are being tested in partnership with food delivery services and have fewer regulatory hurdles than drone technology.
How does the script suggest the future of drone delivery might unfold?
-The script suggests that drone delivery might find success in niche markets, such as medical supply delivery in remote areas, where it offers unique advantages. Over time, as costs decrease and acceptance increases, drone delivery could expand to other use cases.
Outlines
đ The Hype Around Drone Delivery in 2013
In 2013, Jeff Bezos introduced the world to drone delivery, sparking excitement and speculation. Charlie Rose interviewed Bezos, who envisioned drones delivering packages in under 30 minutes. Several companies followed suit, launching autonomous delivery operations, with media attention fueling the excitement. Major corporations like DHL, UPS, and FedEx joined the race, while startups completed their first drone deliveries. The vision of fast, clean, and efficient drone delivery seemed inevitable, but by 2022, widespread adoption had not materialized. Most deliveries are still made by traditional methods, and drone delivery remains a distant reality.
âď¸ Airspace Restrictions and Safety Concerns
Drone delivery in Phoenix is hindered by airspace restrictions around airports and military bases, complicating the operation. While some parts of Phoenix are unrestricted, safe delivery zones are critical. Drone delivery must be precise to avoid accidents, but autonomous systems face challenges identifying safe landing spots. This creates a 'last foot' problem, making it harder to complete deliveries in residential areas. Solutions like using cords to lower packages or setting up controlled delivery zones have been explored, but the practicality of drone delivery is still limited, especially in dense or restricted areas.
đď¸ Narrowing the Viability of Drone Delivery
Drone deliveryâs viability is further restricted by geography and housing types. In cities like Phoenix, only a fraction of homes have the private yards needed for safe deliveries. Airspace restrictions and other factors narrow down potential delivery areas. Only a small percentage of the population would benefit from drone deliveries, making it more of a niche service. Most urban environments, especially in places with harsh climates or dense populations, face significant obstacles. Drone delivery, once imagined as a service for all, is proving difficult to scale beyond small, targeted zones.
đŚ Drone Deliveryâs Competition: Ground-based Solutions
The food delivery industry has thrived, addressing the same needs that drones were expected to fulfill. Consumers prioritize speed and cost, often unaware of how their packages are delivered. Companies like Uber Eats and Grubhub have expanded into grocery and medicine delivery, bypassing the technical challenges drones face. Ground-based robots are also emerging as competitors, offering automation without the legal and logistical hurdles of airspace regulations. The practicality and scalability of drone delivery are being challenged by these more straightforward, cost-efficient solutions.
đ Ziplineâs Success and the Future of Drones
Despite the setbacks, Zipline found success by focusing on medical deliveries in remote areas. Their drones deliver crucial supplies in regions with poor road infrastructure, where only drones can provide fast, cost-effective service. This approach shows that while drone delivery for consumers may still be a distant reality, specialized use cases like healthcare are viable. As technology improves and costs drop, more companies will likely explore drone delivery for specific needs. Ziplineâs quiet but steady expansion is a positive sign that the industry is maturing, albeit more slowly than once anticipated.
Mindmap
Keywords
đĄAutonomous Drones
đĄLast Mile Problem
đĄDisruptive Technology
đĄProof of Concept
đĄRegulatory Hurdles
đĄEconomies of Scale
đĄArtificial Intelligence (AI)
đĄGig Economy
đĄHype Cycle
đĄZipline
đĄConsumer Acceptance
Highlights
Jeff Bezos introduced the concept of delivery drones in 2013, promising a revolution in the delivery industry.
Autonomous drones were expected to deliver packages within 30 minutes of ordering.
The announcement led to debates over the disruptive potential of drone technology.
Drones offered a clean, quick, and convenient delivery option without traffic or fossil fuels.
Startups like Zipline, SkyDrop, and Googleâs Project Wing began experimenting with drone deliveries.
Major couriers partnered with tech companies to solve last-mile delivery challenges.
Drone delivery was seen as a solution to fast delivery niche, high shipping costs, and traffic congestion.
Amazon closed its Prime Air offices in the UK, signaling a slowdown in drone delivery development.
DHL abandoned its parcelcopter project after nearly eight years, indicating a shift away from drone delivery.
Legal, technological, and practical constraints have limited the scope of drone delivery.
Drone delivery faces competition from low-tech solutions like food delivery apps.
Zipline found a unique use case for drone delivery in medical supply distribution in Rwanda.
Drone delivery technology may still have a future in niche applications where it offers unique advantages.
The hype around drone delivery followed a typical tech hype cycle, with high expectations followed by a reality check.
Despite the hype, drone delivery is making progress in specific areas, such as medical supply delivery.
The documentary 'The Colorado Problem: A River in the Red' explores water resource issues.
Transcripts
In 2013, Jeff Bezos introduced the world to a concept that promised to revolutionize delivery.
â[00:00:20] Charlie Rose: Bezos kept telling us that he had a big surprise, something he
wanted to unveil for the first time [...] Bezos: but thereâs no reason they canât be used
as delivery vehicles.â
Within a matter of years autonomous drones would engulf cities, sweeping across skies,
delivering packages to front yards just thirty minutes after their order.
The announcement floored Charlie Rose and America alikeâgrabbing headlines for weeks
and setting off fiery debates over just how disruptive the disruptive technology would
be.
Drones would offer urban and suburban consumers a clean, quick, convenient delivery option
for food, medicine, or whatever else five-pounds-or-less without burning fossil fuels, without getting
stuck in traffic, without making them wait.
The idea felt far-fetched, it was exciting, it was the future arriving in front of our
very eyes, and it signaled that the race to take delivery drones to market was on.Â
By the time Amazon landed its first package, Zipline was already delivering medical supplies
in Rwanda, SkyDrop had flown a 7-Eleven slurpee and a Dominos pizza straight to consumers,
and Googleâs Project Wing had air dropped burritos to hungry college kids.
A wave of startups sent their maiden drone deliveries skyward to much media fanfare while
major parcel couriersâDHL, UPS, FedExâsubstantiated the hype by partnering with the budding tech
companies set to help solve their last mile problems.
Inventors, investors, eccentric billionaires, and the worldâs biggest companies were all
pulling the same rope.
Anything, anywhere, anytime: the dark days of Doordash and two-day delivery were over;
the drone delivery era was coming⌠or so it seemed.Â
Itâs now 2022 and save for the smallest fraction of a percent of people, itâs not
automated drones dropping off your small packages and food orders.
Pizzas arenât falling from the sky, theyâre showing up in the hands of a highschooler.
Burritos arenât delicately dropped on your lawn from above, theyâre left on your doorstep
by a hustling gig worker.
Your Amazon order wonât show up in thirty minutes, it probably wonât even show up
same-day.
The world 60 Minutes introduced in 2013, the world that felt closer and closer to reality
with every inaugural delivery, just isnât here.Â
Fundamentally, the fast delivery niche still exists.
The last mile still accounts for around 40% of parcel shipping costs, roads are still
increasingly clogged with traffic, green shipping alternatives are still desperately needed,
and consumers still want products as cheap and as fast as possible.
Outside of a few specific locations, drone delivery has yet to take offâand in those
few specific locations, it's hardly more than a proof of concept.
Certainly, delays are understoodâexpected evenâwhen it comes to the acceptance of
a disruptive technology.
Delayed acceptance though, is at very most only part of the story.Â
In 2021, Amazon fired staff and closed its Prime Air offices in the UK.
From the former center of Amazonâs drone project emerged stories of mismanagement and
disarray: employees drank beers at their desks, managers were given no direction, executives
ignored the stalling division aside from the occasional pizza party.
While the company responded to these reports with a statement affirming its continued investment
in drone delivery, Amazon hasnât released any promotional material for the project since
2016 and Prime Airâs website doesnât seem to have been updated in years.
The most generous possible interpretation is that Amazonâs project is definitively
on the backburner.
Others arenât even there.
While Amazon remains quiet on their future intentions, DHL announced in summer 2021 that
it was officially abandoning its parcelcopter project nearly eight years after itâs maiden
flight.Â
So, two of the most important drone delivery companies put their programs on ice, few companies
are getting the investment they used to, and no company has yet realized the imminent future
of widespread operations laid out a decade ago.
So, what went so wrong with drone delivery?Â
Well, this is Phoenixâa sprawling desert metropolis home to 5 million people.
On first glance, Phoenix seems the perfect candidate for a drone delivery service: its
year-round sunny, dry, still climate would make for easy, reliable flight conditions;
its autonomous innovation friendly city and state governments would welcome them with
open arms; and its sprawling, low-density neighborhoods would make for countless hungry
and impatient residents lacking walkable dining and shopping options.
Surely, this is the low-hanging fruit.
Surely, a drone delivery company could come in, connect any house with any product within
minutes, and demand would immediately outstrip supply, right?Â
Well, perhaps not.
Connecting any house with a drone delivery provider doesnât quite work because in the
center of the city, right here, is Phoenix Sky Harbor International Airport.
In order to assure the safety of arriving and departing aircraft at the busy hub, the
FAA restricts the use of drones within this area.
So, a Phoenix drone delivery service probably just couldnât operate here⌠and here,
in the restricted airspace around Luke Air Force Base⌠and here, around Phoenix Goodyear
Airport⌠and here, and here, and here, here, and here.
Itâs not entirely impossible to operate drones within restricted airspace, but, from
a legal perspective, it ranges from somewhat to extremely difficultâenough that it probably
wouldnât be worth pursuing for a drone delivery company, at least at the start.Â
The rest of Phoenix, though, is fair game⌠to an extent.
You see, drones need somewhere to deliver to, and itâs got to be safe.
When the concept was first introduced, the vision typically presented was of a drone
flying down, landing on oneâs lawn, releasing its delivery, then taking off and flying away.
That didnât workâŚ
at least not in reality.
Drone delivery is a novel technology and, like any novel technology, the public views
it with an air of distrustâthe worst thing the industry could do is prove that distrust
warranted with a series of high-profile accidents at launch.
The first instance of a delivery drone injuring a customer will inevitably ignite a media
firestorm, which could lead to a legislative clampdown, so manufacturers naturally must
strive for perfection.
Perfection is tough to scale, though.
Delivery drones must act autonomously to be cost competitive, and autonomous operations
require computer vision and artificial intelligence able to reliably identify a clear landing
zone.
Determining whether someone is behind or infront of a window, noticing when a dog is running
towards the drone, knowing whatâs a pool and whatâs dry groundâthese are all challenging
for a computer to tackle on its own, and so attaining perfection proves rather difficult.Â
Therefore, whereas the logistics field generally considers the last mile of delivery the most
difficultâonce the economies of scale are goneâdrone delivery is a last mile solution
with its own last foot problem.
Itâs fairly straightforward to get a drone to a couple dozen feet above the groundâgetting
a package safely to the ground has proven more challenging.Â
Some solutions have emerged: Zipline, focusing on longer-distance delivery to a set number
of facilities with dedicated delivery zones, drops its payload in a packaging with an attached
parachute that carries it to the ground.
Matternet also uses dedicated zones for delivering to commercial facilities, while theyâve
developed a system of delivery stations for use by urban consumers.
Uber Eats, meanwhile, implemented a scrappy yet inefficient system where delivery drones
would land on the top of delivery driversâ cars, then those delivery drivers would walk
the food to the customerâs door.
Most solutions for the last foot problem, however, have gravitated towards one method.
Wing, Skydrop, Flytrex, Wingcopter, and others have developed systems where their drones
hover above the destination at a safe height and lower their payloads to the ground using
cordsâfar less risky than landing a heavy drone propelled by fast-moving rotors.
What all these solutions have in common is that they require a roomy, controlled, obstruction-free
area to make their final deliveries.
However, in the places where people actually live, thatâs hardly a given.
Yards are the best delivery zones that are widespread, but not everyone has a yard.
While itâs a safe bet for single-family homes in an area like Phoenix, it can be hit
or miss whether multi-family homes and apartment buildings have a big enough yard and, even
when they do, their communal nature means that the customer couldnât necessarily guarantee
that the landing area would be free from obstructions as would be the case with their own, private
yard.
So, at least for an early drone delivery service, it probably wouldn't work in restricted airspace
and probably not for anything beyond single-family homes either.Â
These and other legal, technological, and practical constraints combined mean that the
scope of what works in terms of drone delivery is narrow.
Itâs pretty easy to start crossing off citiesâBostonâs winter is too harsh, New Yorkâs density
inhibits yards, DCâs airspace is too restricted, Pittsburgh's landscape is too hilly, this
could go on and on.
Even within the cities that might work, there are only so many areas that might work.
While it varies by company, most delivery drones tend to be able to fly to deliveries
as far as about six miles away.
So, assuming early operations would base out of a single location to capture economies
of scale, meaning their drones would have to return to said location to charge after
each delivery, that means a viable first delivery zone in Phoenixâoptimizing for a large area,
free of airspace restrictions, centered on wealthier neighborhoodsâwould be this.
310,987 people live in this zoneâa small chunk of the metro areaâs 5 million.
However, in Phoenix, only 63.2% of housing units are single-family, which are likely
to have the private yard necessary for a delivery, and only 92% are occupied meaning, in this
prime zone, at least extrapolating using city-wide data, which is the most precise available,
there are only 180,820 possible users of a drone delivery service.
This is, clearly, an imprecise methodology, but itâs indicative of how the prospect
of drone deliveryâthe prospect of anything, anywhere, anytimeâis getting diminished,
and diminished, and diminished down into a niche service for a lucky few.
A small system linking a strip mall to the neighborhood behind it, a fixed route flying
COVID vaccines from a distribution center to vaccination sites, six shops delivering
to a small part of a small town in Virginiaâdrone delivery has hardly moved beyond proof of
concept, and itâs not even clear that theyâve proved the concept.Â
 In 2016, when asked about same-day delivery, 70% of respondents said they were content
with the cheapest option while just 23% of respondents said theyâd pay more for same-day.
For drones to prove commercially viable theyâd need to decisively corner that quarter of
more willing consumers, and to become ubiquitous, theyâd likely need to operate at no extra
charge from ground delivery at all.
Most people, it turns out, are simply okay with waiting a day or two for their packages,
while all want them delivered as quickly and as cheaply as possible.Â
When the drone delivery hype hit fever pitch, one bit of nuance went overlooked.
Consumers simply donât care about how a package gets from b to c, so long as itâs
quick, cost-efficient, and reliableâtheyâd opt for a new technology once for the novelty,
but by the 100th time that wears off.
Eventually rationality will return.
In fact, when surveyed in 2020, consumers perceived drones to potentially threaten those
most important factors for deliveryâthey said they were uncertain about dronesâ reliability,
cost, and were worried about the job loss they could incite.
Meanwhile, competitors have figured out a number of low-tech solutions that fulfill
these consumer desires: look no further than food delivery apps.Â
Since 2017, the very moment when drone delivery hype hit fever pitch, the food delivery industry
has tripled in size, ballooning into a $150 billion sector globally.
In this, speed matters and consumers expect to pay for the delivery costâfacts that
seemingly pave a lane for drone delivery.
But between Uber Eats, Grubhub, and Doordash, the power players are already established
and the competition is already fierce.
These comparably low-tech companies donât even tell the consumer whether to expect their
burger to come by car, moped, bike, or foot; they just prioritize getting food to doors
quickly, pleasing the consumer regardless of method and undercutting drone delivery
in the process.By-and-large, food delivery apps closely match the upside of drones within
urban and suburban areas without the hassle of complying with FAA guidelines and figuring
out the last foot problem.
Adding to the competitive problems facing drone startups, these companies and others
have since expanded into grocery, medicine, and goods deliveries.
Put simply, from the consumer perspective, the problem drone delivery was designed to
address has already been solved without building out a massively complicated aerial delivery
network.Â
The current low-tech, gig economy model isnât perfect, though.
For consumers and restaurants alike, the usage fees are expensive; for those delivering,
the pay is minimal; and for the big players, profit has proved elusive.
One partial solution is automation.
Here still, though, drones are likely to lose out.
Ground-based autonomous and semi-autonomous robotics have begun popping up in test markets
and partnering with the likes of Uber Eats and Grubhub to expand their reach.
While a recent partial ban on sidewalk-wandering robots in San Francisco points to the hurdles
the technology faces, these hurdles just wonât be as numerous as those facing drones.
Automation and technological advances may well help smooth out food and last-mile delivery.
In the near future, your prescription, your lunch order, or your afternoon coffee might
be showing up at your front door courtesy of an autonomous vehicleâyouâll just need
to reach down and grab it from a robot instead of unclipping it from a drone above. Â
Now, many probably now look at drone delivery in retrospect and find it unsurprising that
the bombastic claims of the 2010s failed to pan out, but far fewer would have expressed
a dissenting opinion just five years ago.
Thatâs because this is a rather classic story: that of a hype cycle.
A new idea comes around, a few early players start development, then somethingâa launch,
a demo, or even just a domino effectâsets off a media firestorm painting a rosy picture
of a future revolutionized by this new technology.
This story is so archetypal in tech that thereâs even a theoretical framework defining the
process: Gartnerâs Hype Cycle.
According to it, after that media firestorm, that peak of inflated expectations, results
slow and sentiment starts shifting downward.
Investors complain and the publicâs memory fades until the media begins coverage of the
purported failure.
The public grows disappointed, but then grows silent, and in the silence, first generations
are adapted into seconds, failures inform potential success, and slowly something meaningfulâalbeit
minor compared to the original visionâstarts to work.Â
We are here.
While whatâs happening may be drowned out in the media by whatâs not, there are applications
that are starting to work.
Three years ago, Zipline was a small Silicon Valley startup operating a few dozen drone
delivery flights per day in one region of Rwanda.
They relied on the principle that many medical products are crucially important when used,
but not used regularly, and often have short shelf lives, making them tough to economically
and efficiently stock at smaller clinic operations.
In less developed regions, poor road infrastructure makes many remote clinics many hours or days
away from a distribution center, despite relative proximity as the crow flies.
Therefore, Ziplineâs drones acted as a quick, low-cost distribution system for necessary
medical products to remote areas dotting Rwandaâs rolling hills.
Far more places than Rwandaâs Southern Province fit this description: nowadays, Zipline operates
similar systems in the countryâs Eastern Province, four regions in Ghana, the US, and
a number of other locations are in active development.
Excitingly, the news of Ziplineâs impending expansion to the Ivory Coast hardly made news:
it wasnât written about in Wired, TechCrunch didnât publish an article about itâjust
a simple press release and some industry and regional coverage.
This is progress.
This shows that Ziplineâs deployments arenât proofs of concepts, arenât publicity stunts,
theyâre actual, real, commercial implementations.
Crucially, Zipline didnât find a use case that drones could fulfillâthey found a use-case
that only drones could fulfill.
They found the healthcare use-caseâthey found the low-hanging fruit, and other companies
are noticing.
Matternet and Wingcopter are now placing heavy emphasis on their medical potential as well.Â
As the early use-case matures, cost will come down, acceptance will rise, and innovators
will find more uses that only the novel technology can fulfill.
Once one becomes clear, more must be possible.
Eventually, everything will creep closer to that idealistic vision first presented at
peak of the hype and then, just slightly delayed behind expectations, the new technology will
finally have actually changed the world.Â
Unlike delivery drones, what I hope does live up to expectations is our brand-new, feature-length
documentary, which came out today after almost a year of work.
Itâs called The Colorado Problem: A River in the Red and rather than trying to describe
it, youâre about to become one of the first people to see its trailer, but before I need
to very quickly remind you that if youâre not already a subscriber to CuriosityStream
or Nebula, the two sites where you can watch this doc, you subscribe to them both for less
than $15 a year at CuriosityStream.com/Wendoverâlower than the monthly fee for that big, red streaming
site that just jacked up its price.
Itâs these exact subscriptions that enable us to do these big, ambitious documentary
projects, so a massive thank you to those of you already subscribed.
But now
to the point: the trailer.
As a reminder, to watch this doc, click the button on-screen or head to CuriosityStream.com/Wendover
and youâll get access to both CuriosityStream and Nebula for less than $15 a year.Â
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