Drone Delivery: By The Numbers

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DRONE DELIVERY: BY THE NUMBERS

Quick Study

October 2014Colin Snow

CEO and Founder

Copyright 2014 – Drone Analyst

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About this study What you would pay for drone delivery of consumer items from a service like Amazon Prime Air?


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About this study We probed three basic questions:

1. What’s the maximum amount consumers would be willing to pay for a package delivered by drone?

2. Under what circumstance would someone need something so quickly that you’d pay top dollar for it?

3. Which items are most desired to delivered in 30 minutes?

Read the background article here: http://droneanalyst.com/2014/08/24/drone-delivery-how-much/

Aug – Sep 2014


http://droneanalyst.com/2014/08/24/drone-delivery-how-much/

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First, we wanted to know: What’s the maximum amount consumers would be willing to pay for a package delivered by drone?

So, we asked a question to determine if consumers wanted to pay a flat fee or be charged a percentage of the items price.


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Consumers say..

..leave many consumers out because of their unwillingness to pay more than overnight delivery.

82%

61%

25%

they would not pay

more than $50 per delivery.

A fixed charge might..

they would pay a % of purchase price

rather than a flat fee.

yes

they would pay for the service.


Source: Drone Analyst

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Maximum % of an item’s price consumers would pay for drone delivery


..leave a delivery service with losses if the value of delivered items is low.

A % charge might..

51%43%

6%

Up to 10%

Up to 20%

Up to 30%


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Second, we wanted to know what items consumers would likely purchase and have delivered by drone.

For the survey choice options, we looked online shopping trends for the most popular categories and top purchase drivers –keeping in mind the items had to fit the following requirements:

1. The order must also be small enough to fit in the cargo box that the craft will carry

2. The items must be less than 5 lbs.


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Items consumers would want delivered in 30 minutes or less

Respondents could chose as many as applies.

Nearly three-quarters would use drone delivery to have a gift delivered.

Over half chose electronics.

Batteries was the most mentioned item in ‘other’


14%

12%

14%

14%

22%

22%

35%

38%

45%

57%

72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Toiletries

Books

Underwear

Condoms

Liquor or wine

Flowers

Medicine

Food

Electronics

A gift


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Third, we wanted to know under what circumstances consumers would need something so quickly that they’d pay top dollar for it.

For the survey choice options we looked at the same online shopping trends for the most popular categories and top purchase drivers.


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Reasons consumers would use drone delivery service


4%

14%

29%

36%

46%

59%

64%

66%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Can't find or retrieve an item

To say “I did it”

‘Just Want It’

Desperate

Forgot anniversary, birthday, etc.

In trouble / need it quick

Emergency


..can mean anything, but drone delivery might help with a last minute anniversary or birthday gift.

Emergencies..

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Insights 1. For the most part, consumers are willing to use a drone delivery service, but price matters.

2. Consumers are not willing to pay more than 30% of the item’s value for that delivery - most no more than 20%.

3. Electronics given as gifts will likely be the most ordered items.

4. Consumers consider batteries important and urgent enough for drone delivery.

Simple example:

A consumer camera is ordered as a last-minute gift and needs to be delivered in 30 minutes or less.

Continued next page..


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Insights ..simple example

The most popular camera in 2014 is the Sony DSC-RX100M II Cyber-Shot Digital Still Camera. As of the date of this presentation it lists on Amazon for about US $650.

If the drone delivery service charges 20%, then the extra cost would be US $130

If the drone delivery service charges 30%, then the extra cost would be US $195


http://www.amazon.com/Sony-DSC-RX100M-Cyber-shot-Digital-Camera/dp/B00DM8R866/

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Insights Food may not be a good candidate for drone delivery. Whether from the supermarket, mini-mart, fast food joint, or other restaurant, food is generally very inexpensive per pound.

Drone delivery is best suited to high value, lightweight merchandise, including most items at Walgreens, CVS or Rite-Aid, and a meaningful portion of the merchandise at many other large retailers.


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Insights In addition to consumer products delivered to households, drones can provide fast and cost-effective deliveries to remote, hazardous or hard-to-reach areas.

Other applications for drone delivery include:

- Relief shipments or medicines delivered on-site more quickly

- Autonomous logistics within corporate structures or facilities (micro logistics)

- Transportation network or logistics for last-mile delivery of critical components or raw material

- Document delivery


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Learn more about the commercial use of drones

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Visit our website: http://droneanalyst.com/

Image credit: Amazon, DHL, Shutterstock, Sony

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Drone Delivery: By The Numbers

Technology

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