Recent advancement leading to Accurate Delivery-Time Customization boosting Delivery Drone Market
Posted On February 03, 2021
All around the world, entrepreneurs indulged in retail business want to pursue new approaches that will provide them with faster delivery. It has been argued that the best possible solution for this is drone technology. Drones have the ability to be a game-changer in the retail market as they have the ability to offer accurate delivery – time customization adaptability and never known before delivery lead times.
Recently, a new study explores ways in which drone delivery may change retail, logistic networks. This is a significant advancement for the delivery drone market as it could lead to faster delivery time. As per experts, if a retailer has the ability to deliver goods in 15 minutes instead of three-day standard time, then it is likely that demand would go up. Hence, fast delivery times would mean more profits while also implying more need.
This new study focuses itself towards the usage of custom-facing delivery centers, also referred to as last-mile warehouses. It concluded that as drone technology matures delivery speed of drones and the number of last-mile warehouses is likely to increase. Hence, last-mile delivery networks will be more decentralized in the future as drones will start to operate at high speeds.
The analysis of the report proves that, even though perfect customization of retail delivery will ensure more profit, it is impractical. Suppose a retailer offers a time delivery guarantee of five minutes to a customer living 1 mile away and another customer a timed delivery guarantee of seven minutes as he lives 1.5 miles away. Providing this type of service is complicated and impractical.
Instead, retailers can acquire a sizable profit by dividing their market into zones and offering the best –possible delivery services. This can be done by offering every customer living in a 5-mile area a delivery-guarantee time of 15 minutes. Hence, limited customization is also an excellent strategy to acquire.
The study noted that there needs to be a balance between the delivery speed of drones and last-mile warehouses. It is because profitability will improve only when both variables increase. For this reason, in markets where several warehouses cannot be increased, it will be best for retailers to offer a lower delivery speed.
Although drone technology provides several benefits in the retail market, safety, and privacy complications need to be solved. Also, regulations that co-ordinate drone travel and public fear of drones flying over their heads need to be taken care of as well. For solving these problems, the paper hints towards pilot programs testing drone technology.
As drone technology matures, it is safe to assume that it would be commercially available on an industrial scale in the near future. This concept would be beneficial and particularly appealing to customers that want their delivery to be both safe and quick. The COVID-19 pandemic may hasten this new development as hands-free delivery would be especially advantageous in the post-COVID 19 eras.