Amazon set to expand drone delivery of lightweight packages to 500 US cities

Amazon plans to broaden drone delivery of lightweight packages to an estimated 500 U.S. cities by the end of the year, according to a company announcement made on Thursday. The drone service will be available in suburban areas, delivering items weighing up to 5 pounds within a 30-minute window. This expansion marks a significant increase for Amazon, which intends to serve over six times as many communities nationwide, including major metro areas such as Chicago, Atlanta, Cleveland, and Boise.

The company's drones will primarily operate in suburban areas, avoiding obstacles like skyscrapers and major airports.

While Amazon has already delivered thousands of packages via drone this year, the company acknowledges that drones will still play a minor role in the overall package delivery landscape. In addition to their weight limitations, the drones face challenges related to tree cover, landscaping, and other environmental factors, as well as regulatory and noise-related hurdles in each community where Amazon intends to operate.

Moreover, the economics of the service and consumer adoption remain unclear, as Amazon continues to test and refine its approach.

The free drone delivery service will be available to Prime members who spend over $50 on orders, while smaller orders will incur a $2.99 fee for Prime members and a $4.99 charge for non-members. Non-members will pay $4.99 for drone delivery for orders under $35, or up to $12.99 for same-day shipments when available. According to retail analyst Sucharita Kodali, drones may prove particularly useful for urgent deliveries, such as prescription medications.

Amazon CEO Andy Jassy has expressed confidence in the potential of drone delivery, stating that the company has gained valuable insights from testing drones in various locations across the United States. Jassy aims to serve 30 million customers by year-end and expects to deliver half a billion packages by the end of this decade, with the goal of delivering within 30 minutes.

Amazon has also secured certification from the Federal Aviation Administration and obtained waivers to fly drones beyond the pilots' line of sight. The company continues to invest in safety measures and explore ways to minimize drone collisions with other objects in the sky.