UPS Drone-Delivery Plans a 'Warning Shot' to Amazon, Says GlobalData

UPS’ announcement it received FAA approval to operate aerial delivery drones is a “warning shot” to Amazon, said GlobalData analyst Mike Vousden Friday. UPS is “keenly aware” of Amazon’s commitment last month to buy 100,000 electric vans from EV startup Rivian, said Vousden. Initial UPS plans call for expanding drone deliveries to hospitals, but it plans to put drones to "new uses in the future," it said. Marking a “new era of parcel logistics,” UPS’ plans for coverage for the “last mile” of parcel delivery could bring fuel efficiency gains that significantly reduce its fuel costs and delivery times, said the analyst. Last year, UPS signed a deal buy 1,000 electric delivery trucks from EV maker Workhorse, which has been developing an autonomous drone delivery system built into the roofs of delivery trucks. Vousden called Workhorse’s Horsefly drone delivery system an “ideal complementary technology” to UPS’ drone fleet.