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Amazon drone delivery plan announced

Amazon, the most visited online retailer, announced plans for aerial delivery within 30 minutes of purchase.
Posted By Sonali Basak   |   Dec. 2, 2013 at 9:24 AM

Dec. 2 (UPI) -- Amazon revealed Sunday night that it's created aerial devices to pursue same day deliveries, within a half hour of order placement.

CEO Jeff Bezos showcased the plan on CBS's 60 Minutes. The program would be called "Prime Air," and the drones would carry packages up to five pounds, which make up 86 percent of Amazon deliveries.

The service would be available to Amazon Prime members, who pay $79 per year for faster shipping and more content.

"One day, Prime Air vehicles will be as normal as seeing mail trucks on the road today," the company reported. This comes after the company revealed Sunday delivery in a deal with the United States Postal Service, and ahead of Cyber Monday -- the biggest day for online shopping sales of the year.

Amazon is working with the Federal Aviation Administration to clear the drones for takeoff, with safety a main concern. The company doesn't expect clearance until at least 2015.

But Bezos said in the 60 minutes interview that it's still a research and development project. “I don’t want anybody to think this is just around the corner,” he said.

Amazon recently has invested in a number of warehouses worldwide, striving for faster delivery and better customer service along with an number of rising competitors, including eBay. But Amazon is still the most visited online retailer, according to comScore.

Bezos also explained an expansion in to new areas including fashion and original television content. The company already fulfills same-day grocery delivery in Seattle and Los Angeles in an effort to expand the range of products sold, Bezos said.

But the endeavor is expensive, and with Amazon's third-quarter costs rising 35 from the year prior, a realignment of Amazon's reach can be expected.


[CBS News]
[Wall Street Journal]
[Bloomberg]

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