Fast-Trade to Get Faster with Drone Delivery – Industry News

Imagine picking up your next package of online shopping via drone. Does that sound far-fetched? Given the pace at which fast-paced retail is expanding into urban centers, drone deliveries could soon become a reality.

According to industry forecasts, by 2027, approximately 30% of all quick commercial deliveries in large cities will be made using drones.

That’s because drone deliveries offer huge benefits for fast-trading companies. “For fast-trading players, drones can reduce delivery times by up to 50%, cutting costs by 30%,” said Fe Rohan Dani, investment officer at BlackSoil.

Analysts say the operating costs of drone delivery services are 40% to 70% lower than those of vehicle delivery services.

Many logistics companies, such as Ecom Express and Shiprocket, are experimenting with drone deliveries by partnering with startups offering drones as a service.

The way drone deliveries work is simple. These drone startups set up skypods in residential areas where a drone, carrying packages weighing up to 10kg, lands. A delivery manager, often called a skywalker, is stationed there to pick up the packages. He then delivers them to customers’ homes.

For example, drone startup Skye Air has partnered with around four logistics companies to deliver its parcels to residential communities in Gurugram. The startup has set up skypods in over 70 residential communities, which are currently being mapped. Out of these, three communities are currently active, where around 1,000 parcels are being handled by drones every day. The startup plans to scale up to over 10,000 parcels per day in the National Capital Region with over 100 communities by the end of this year.

“The company’s goal is to make the future of last-mile logistics faster, more sustainable, more efficient and more cost-effective, for every parcel we deliver,” said Ankit Kumar, founder and CEO of Skye Air Mobility. Every parcel delivered by drone saves about 520 grams of carbon dioxide emissions. That means that with 1,000 deliveries per day, we can save about 80 tons of carbon dioxide emissions.

Kumar added that the current trend of moving towards fast-paced commerce, which includes giants like Flipkart and JioMart, will make drone deliveries more common than ever before.

In addition, the civil aviation ministry is expected to unveil a set of measures to make drones more popular. Drones are already allowed for services such as vaccine delivery, inspection of oil pipelines and transmission lines, anti-locust operations, agricultural spraying, mine surveying and terrain mapping.

Logistics unicorn Shiprocket began drone delivery trials in August 2023 and is currently handling over 5,000 deliveries per month in Gurugram. “These trials help us collect valuable data and refine our delivery processes to ensure efficiency and reliability,” said Saahil Goel, Managing Director and CEO, Shiprocket.

The company plans to increase deliveries and expand to more locations in the near future. “Expansion will depend on the success of our current trials, regulatory approvals and technological advances,” he added.

Logistics startup Ecom Express sees greater potential in drones for longer-distance deliveries. The company is testing drones to provide same-day delivery (SDD) and next-day delivery (NDD) services. “By leveraging drone technology, we aim to increase the speed of delivery, improve efficiency and reduce carbon footprint,” said Vishwachetan Nadamani, COO of Ecom Express.

Currently, Ecom Express is making around 150 to 200 drone deliveries per day as part of these trials. Beauty, personal care, medical, fashion are some of the categories being delivered. Once the pilot phase is successfully completed, the company aims to scale up drone delivery operations to cover more pin codes in Gurugram and then expand to other metro cities like Bengaluru and Chandigarh.

Garuda Aerospace is another startup that plans to deploy close to 6,000-8,000 drones this year. They will be capable of providing agricultural and logistics services in 400 districts.