Walmart And Amazon Drones Battle For Last-Mile Delivery Supremacy
Walmart and Amazon are engaged in a war of delivery drones. Although Amazon may be the largest e-commerce retailer, Walmart may have a structural edge enabling them to deliver groceries and household items by drone more quickly. Both players introduced short-range drones to transport small packages up to 5 pounds. According to Amazon, about 90% of products they sell weigh under 5 pounds.
Walmart claims they have a store within 10 miles of 90% of Americans. Amazon, by contrast, delivers from its fulfillment centers, usually located near major cities. That gives Walmart an edge until Amazon ramps up their rural presence.
Meanwhile, Amazon has patented a futuristic Jetson-style idea for distribution towers that look like beehives. The towers would function as fulfillment centers with landing pads for delivery drones, strategically located near high-density residential towers.
The current need for social distancing has accelerated a paradigm shift from brick-and-mortar stores to online shopping with contact-free delivery.
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(Photo credit: Amazon, via FreightWaves, and Walmart, via FreightWaves)