Amazon’s drone delivery set for massive expansion across 500 US cities

Amazon announced plans on Thursday to broaden its airborne shipping network to suburban neighborhoods across almost 500 US cities by the end of this year, potentially allowing millions more consumers to receive small, lightweight packages. According to a statement from Amazon, these automated flights can transport items weighing up to 5 pounds, reaching shoppers' homes in as little as 30 minutes. The move will escalate the competition between Amazon and Walmart to offer customers the fastest fulfillment speeds.

Both corporate giants currently utilize a combination of drivers and drones to distribute ordered products. This strategy will expand Amazon's nationwide drone operation by more than six times, introducing services to hundreds of additional communities, including the Chicago, Atlanta, Cleveland, and Boise metropolitan areas. The aircraft will operate mainly in suburban zones, keeping well away from skyscrapers and major airports that might present hazards.

Hundreds of thousands of packages have already been delivered by Amazon drones this year, but even after this expansion drones will still only handle a fraction of the hundreds of millions of package deliveries each year. In addition to only being able to carry 5 pounds, the drones Amazon builds face countless challenges from tree cover to landscaping and inflatable pools that can make it hard to find a good drop zone. There are also regulatory hurdles to overcome in every community where Amazon wants to set up operations.

Noise concerns also pose a potential challenge. It’s still in test and learn mode,” said Sucharita Kodali, who is a retail analyst with Forrester. Initially, consumers might order something delivered by drone because they are curious about it, but it’s not clear how often they will continue to use the service, and Amazon is still working out the economics, Kodali said.

The service will be free for Amazon Prime members who are ordering more than $50 worth of goods, but smaller orders will cost members $2.99. Non-members will pay $4.99 for drone delivery. Prime members get free deliveries while non-members pay a flat fee if the shipment is under $35 for standard delivery or up to $12.99 for same‑day shipments when available.

Kodali said drones could prove more useful for certain light-weight deliveries that are needed urgently like prescription medications. DoorDash and other delivery companies also are experimenting with using drones to deliver foods and other goods. Amazon’s CEO Andy Jassy told shareholders in his annual letter in April that the company has learned a great deal by flying drones in 11 sites across Arizona, Florida, Kansas, Louisiana, Michigan, Nebraska, and Texas.