World’s largest e-commerce company by revenue is set to disrupt the market for supply chain management and logistics, for a while – at least. As per company’s CEO Jeff Bezos, Amazon is planning to launch Octocopers (mini-drones) to provide delivery of parcels in near future.
Amazon is unarguably e-commerce mammoth with $61 billion in revenue for 2012. Company is based in Seattle. Amazon was started as online book store but soon diversified in other e-commerce trades. Amazon has always been the front-runner in logistics and other innovation be it fast delivery in collaboration with US department of Post or other like same.
As per Mr. Bezos, company will soon, expectably in 2015, launch mini-drones for delivery of parcels under a 10 miles area and under 5 pound. This pool will form 86% of total deliverables of Amazon. These mini-drones will be powered by electric motors and will cover about 10 miles radius around the fulfillment center. These will work on GPS coordinates transmitted to them. Company is expecting to reduce the delivery time to half-an-hour with such technology. These Octocopers have the advantage of being green, fly without the hassles of traffic and of course fast delivery
As of now company is expecting FAA (Federal Aviation Administration) rules to come out in 2015 or earlier. As the device that company is planning to implement is not allowed as per current regulations of FAA. These would fly without pilot.
Now the next view is how this is going to disrupt the e-commerce market which is already very congusted with low margins for most of items, at least in US and other developed countries. But the innovation will definetively drive the market in upcoming decade.
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