Drone Delivery Tests What 20 Minutes Is Worth

When a $10 item fails to arrive promptly, it can disrupt a customer's plans. Lowe's is testing drone delivery, partnering with DoorDash and Alphabet's Wing to deliver small items in as little as 20 minutes in Charlotte, North Carolina. Customers can order through DoorDash, with the initial selection including hand tools, paint products, and household items.

Wing drones can carry up to 2.5 pounds per flight. While small purchases have historically been challenging to deliver economically, urgency can alter the customer's cost-benefit calculation. A missing drill bit, necessary medicine, or charging cable can be worth more than the item's price, especially in time-sensitive situations.

Walmart has already delivered over 1 million drone deliveries, with an average delivery time of 23 minutes and a fastest delivery time of just over 4 minutes. The retailer estimates that autonomous delivery costs between $5 and $7 per order in early markets, potentially dropping to around $1 per drop as technology matures. Amazon plans to expand its Prime Air drone delivery service to nearly 500 U.S. cities by the end of 2026.

The economics of drone delivery depend heavily on cost, with autonomous delivery having the potential to significantly improve the economics of delivering smaller, less expensive orders.