Packaging Europe Issue 16.4

Page 19

HOW DRONES ARE RESHAPING HOME DELIVERY

To many consumers, the idea of products being delivered by drones may seem fanciful. However, Wing, which is owned by Alphabet – Google’s parent company – is already operating its drone delivery services in three countries. We spoke with the company to learn more. FS: Broadly speaking, why should the packaging industry be interested in drone delivery technology? What are the potential benefits?

FS: Could you give us some details on how the process works, from when the customer orders a product to when the product is delivered to them?

W: Several of the merchant partners we work with today have told us

W: Wing’s drones are custom-designed to deliver packages safely, reli-

they previously gave up on home delivery altogether, because the finances just didn’t work out. Brugh Coffee, one of our merchants in Virginia, tried more typical on-demand delivery options previously, but he said it cost too much and drinks arrived too cold. But with drone delivery, suddenly home delivery is back on the table. As this technology expands, we expect businesses to be able to deliver goods more safely, more efficiently, faster, and at a lower cost than conventional road transportation. Right now, last mile delivery accounts for over 50% of the total cost to ship a good. In the next decade, the number of last-mile delivery vehicles on our roads is set to grow by 36%, increasing emissions by 30% and adding 11 minutes to the average commute, according to the World Economic Forum. By leveraging the underutilized space above us, drone delivery can lessen our reliance on the ground beneath us, cutting costs and emissions, reducing congestion, and making our roads safer. A recent study conducted by Virginia Tech University found that drone delivery at scale in an average U.S. metro area could save the average consumer up to 56 hours per year by reducing unnecessary errands and trips; generate up to $284,000 USD per year in new sales for a typical restaurant; reduce vehicle traffic by 294 million miles per year, equivalent to taking 25,565 cars off the road; avoid up to 568 car crashes per year; and displace up to 113,900 tonnes of CO2 per year, equivalent to planting 46,000 acres of new forest. Our model also allows businesses to reach more customers. According to a study by Gaia Consulting in Finland, the use of drones in home deliveries could expand the market reach of local businesses by 2x or 3x by 2030. The wider operating area could enable companies to reach 250,000 more households and would increase product variety for consumers by 3x to 8x.

ably and very quickly. Once a customer submits an order, our drone picks up the package at our delivery facility. The drone then climbs to a cruise height on average of about 45 metres above ground, flying to the designated delivery destination typically in several minutes. Once at the customer destination, the drone slows down, hovers, descends to a delivery height approximately seven metres above the ground, and then lowers the tether and automatically releases the package in the desired delivery area. There is no need to unclip or assist with the delivery of the package. Needless to say, the whole process is fully Covid-19 friendly, allowing customers, notably the most vulnerable ones, to shop safely from their homes.

FS: In the past, safety concerns have been raised about the proliferation of drones in both commercial and recreational capacities. How would you respond to these concerns? W: Safety is the number one priority at Wing. We have flown more than 100,000 flights to confirm the safety of our operations, and have had no safety incidents in the tens of thousands of deliveries made across three continents. We have multiple levels of redundancy built into our operations, including real-time systems that conduct health and safety checks on our drones and qualified pilots who oversee operations. To enable us to offer our services, civil aviation authorities (CAA’s) in the US, Australia and Finland have all rigorously reviewed the safety of Wing’s aircraft, personnel and operations to ensure operations meet the highest level of safety. Lightweight delivery drones are among the safest ways to transport goods; they are safer for the community than having goods delivered by Packaging Europe | 17 |


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