Delivery Services

Overview

Delivery services refer to the service of transporting products such as manufacturing goods, retail goods, and food from one location to another, provided by the logistics and transportation industry. The past decade of evolving e-commerce trends and shift from in-store to online transactions; and in the light of the novel Corona Virus (COVID-19) in the beginning of 2020, there has been an increased demand for faster delivery of goods in the world of online retailers and businesses. Vehicle and fleet management are the major components of delivery services – transportation delivery technologies consist of new vehicle types, new methods of controlling and communicating with the vehicles (sidewalk delivery robots, aerial drones).

Delivery Robots or Droids

Delivery bots are small vehicles designed to make individual door-to-door deliveries, currently under use by courier network services such as Postmates. These bots are autonomous and/or remote controlled. Major manufacturers include Starship Technologies, Alibaba and Marble. These devices generally have a maximum speed of 10 mph. The primary purpose of delivery robots is to move goods within a distribution center, but can also deliver goods to people's homes. These devices must share public right-of-way with other users according to current vehicle codes if they leave the warehouse to make a delivery.

Delivery or Commercial Drone

A drone is a flying vehicle without a human operator on board. Handheld drones are available as a consumer electronic and are often used for research. These drones generally have a maximum range of 2000 feet. Commercial models can lift up to 15 pounds, and can lift even more weight if they are gasoline powered.

• Amazon Prime Air, Zipline International, Matternet, Flirtey
• Handheld has max 2000 ft altitude, 2 Km range.
• Military versions can fly up to 18,000 ft altitude, 100 km

• Commercial models can currently lift up to 15 pounds.  The higher capacity drones are gasoline powered.  
• FAA airspace requirements and licensing, currently most US drones are subject to “line-of-sight” operation. However, pilot applications in US are being initiated that have some regulatory exceptions.
• Application - Currently in use internationally for delivery of high-value, time-sensitive goods. In the US, commonly used for photography, visual inspection, monitoring, and recreation.
• Location - Ubiquitous

• Aerial drones (Uber Elevate) are used for delivery services in the US where regulations are flexible

• Can fly up to 2,000 feet altitude – range of around 1 mile – carry lads between 1 and 15 pounds
• Drones can increase access in inaccessible and unreachable rural areas to goods  
• Can be used 24 hours a day – avoiding human work hours
• Impact to travel demand – Droids and drones could replace delivery trucks to residential areas – costs will be reduced.
• Impact to land use – Consolidation of smaller distribution warehouses into larger warehouses and centers. Curbside loading drone ports may be needed in front of residences rather than in front of retail stores.

Analysis of Implications

Several locations in the United States have undertaken curbside management strategies. One curbside management strategy is to implement shared use mobility (SUM) zones, or to change the use of the curb by time of day or time of week. This can allow for designated areas for freight delivery during specific parts of the day. Over the years, there has been an increase in on-demand front-door delivery of goods with rise of Amazon-Prime (between 40% and 75% of American households as members) - therefore this has led to an increase in last-mile delivery services. Autonomous Small Load Delivery Vehicles or non-automobile personal delivery modes (NAPDM), including unmanned aerial drones and ground-based droids, have the potential to fill this “last-mile” niche. Non-automobile personal delivery modes (NAPDM) include aerial delivery drones and terrestrial delivery droids however, these devices are yet to attain public right-of-way (it is currently being considered).

Policies and Regulations

• Privacy of the public is a concern  

• Laws within states for drones include:
  • Requirement for police to obtain a warrant to use UAS (Unmanned Aircraft System) for surveillance.
  • Prohibitions on using UAS for voyeurism, hunting, fishing, or harassing individuals who are hunting or fishing.  
  • Prohibitions on attaching weapons to UAS.

• Some key FAA regulations in effect in 2018 include:  
  • The “line of sight” rule – operators on the ground must be able to see the drone at all times.  
  • Drone pilot licensing
  • Weight restrictions (less than 55 pounds)

• Concern for federal agencies – safety regulations in public right-of-way; state agencies – vehicle code regulation; county and city agencies – local zoning, docking, taxation regulations for cargo delivery operators

• Audience – food delivery – Millennials spend the most of their budget on ready-to-eat food as compared to other generations (fast paced lifestyle)  
• McKinsey predicts future where drones and AVs will deliver 80% of all packages (https://www.newgenapps.com/blog/6-delivery-trends-to-take-2019-by-storm/)  
• https://www.winnesota.com/ondemandtransportation
• Maintenance, cleaning of drones and droids - https://www.tdworld.com/test-and-measurement/article/21138573/droids-and-drones#:~:text=According%20to%20a%20report%20by%20GlobalData%2C%20droids%20and,but%20don%E2%80%99t%20worry%20about%20a%20robot%20replacing%20us.
• Top delivery drones being used by large companies include:
  • Wing delivery drone
  • Matternet M2 parcel delivery drone
  • Wincopter 178 Heavy Lift delivery drone
  • Rakuten Tenku delivery drone
  • Condor parcel delivery drone

• • Zipline autonomous delivery drone
  • Flirtey delivery drone

• Drones vs. Droids - https://www.retailcustomerexperience.com/blogs/droids-vs-drones-the-war-to-win-the-last-mile-of-retail/
• In August 2020, Amazon obtained an exemption and operating certificate but it can only deliver to rural farmland.
• Problems with drone delivery – FAA Part 107 Drone Regulations – August 29, 2016

• State and Local Regulation of Unmanned Aircraft Systems (UAS) Fact Sheet - https://www.faa.gov/uas/resources/policy_library/media/UAS_Fact_Sheet_Final.pdf  

Case Studies

• In 2016, Otto (Uber’s self-driving vehicle company) tested the first commercial truck delivery where they ran a Volvo truck tractor towing a payload of Budweiser beer on a 120-mile “beer run” on Interstate 25. For part of the trip, the truck driver was seated in the rear of the cab while the truck drove down the interstate.
• Use of autonomous vehicles in last-mile delivery – AVs help in reducing personal vehicle trips – This study looks at three future scenarios from 2025 to 2035 examining factors that may affect the demand for and supply of delivery AV services
• Economic impacts of autonomous delivery services in the US – manufacturers are investing in partnerships with grocery outlets such as Kroger, Walmart, Domino’s and CVS Pharmacy – Demand has increased with impact of COVID-19 as there is an increase in interest for contactless delivery

• Two Houston stores have deliveries brought curbside from a driverless robotic car
• Kroger has partnered with Nuro (a Silicon Valley self-driving service startup) to deliver goods in Scottsdale, Arizona - https://www.forbes.com/sites/lanabandoim/2018/12/19/kroger-is-using-unmanned-autonomous-vehicles-to-deliver-groceries-in-arizona/#4c179fc92f57
• District Department of Transportation – Curbside Pickup-Dropoff (PUDO) program will focus on commercial activity - https://ddot.dc.gov/release/ddot-announces-next-innovation-curbside-management-program  
• California DMV authorized autonomous technology startup Nuro to test driverless delivery vehicles in 9 cities – decision that came on light of coronavirus concerns - https://www.claimsjournal.com/news/national/2020/04/08/296464.htm
• Sharing economy – Walmart is testing a program to match Amazon services – since it is faced by a shortage of delivery staff, Walmart is sending employees to delivery products at the end of their shifts (https://www.bloomberg.com/news/articles/2017-06-01/wal-mart-taps-employees-for-quick-deliveries-to-take-on-amazon)

“Players in the Field”

• Hyperlinked list of universities, research institutes, government agencies, and private tech companies advancing the technology

References

• Author Last Name, Author First Name (Date Published). “Article Title”. Accessed On [Date]. Hyperlink.