Urban Quick Commerce Set For Transformation With Drone Deliveries By 2027

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On July 6, 2024

06 July, 2024 – Imagine your next online shopping order arriving via drone—a concept that is fast becoming a reality with the growth of quick commerce in urban environments. Projections indicate that by 2027, drones could handle up to 30% of all quick commerce deliveries in major cities, as reported by the Financial Express.

The appeal of drone deliveries for quick commerce companies lies in the significant advantages they offer. According to Rohan Dani, an investment professional at BlackSoil, “for quick commerce players, drones can cut delivery times by up to 50 percent, slashing costs by 30 percent.”

The cost of operating drone delivery services is considerably lower, ranging from 40% to 70% less than traditional vehicle-based services. Several logistics firms, including Ecom Express and Shiprocket, are actively exploring drone delivery options through partnerships with drone startups offering drone-as-a-service, the report noted.

How Drone Deliveries Operate?

The process of drone delivery is quite simple. Startups create sky pods in residential areas where drones, capable of carrying packages up to 10 kg, land. Packages are removed from these pods and delivered to clients’ houses by a delivery professional called a skywalker.

For instance, Skye Air, a drone startup, has partnered with around four logistics companies to deliver packages in Gurugram’s residential communities. The company has set up sky pods in over 70 mapped residential areas, with drones currently servicing three of these communities and handling approximately 1,000 packages daily.

By the end of the year, Skye Air hopes to raise this capacity to more than 10,000 parcels each day throughout more than 100 residential neighborhoods in the National Capital Region (NCR). Ankit Kumar, CEO and founder of Skye Air Mobility, stated that their company aims to make last-mile logistics speedier, more efficient, more sustainable, as well as pocket-friendly throughout every package that is delivered.

Eco-Friendly Deliveries

Drone deliveries also offer environmental benefits. A delivery carried by drone may cut carbon emissions by around 520 grams. Therefore, with 1,000 daily deliveries, nearly 80 tons of carbon emissions can be saved. The Civil Aviation Ministry is expected to roll out several initiatives to promote the mainstream adoption of drones. Currently, drones are authorized for various services, including vaccine delivery, inspection of oil pipelines and power transmission lines, anti-locust operations, agricultural spraying, surveying mines, and land mapping.

Increasing Drone Deliveries

In August 2023, logistics unicorn Shiprocket began drone delivery trials, handling over 5,000 monthly deliveries in Gurugram. Saahil Goel, Managing Director and CEO of Shiprocket, emphasized that these trials are critical for gathering data to enhance delivery systems’ efficiency and reliability.

Drones have enormous promise for long-distance delivery, according to logistics firm Ecom Express. Drones for same-day as well as next-day delivery are being tested by the organization.

Mr. Vishwachetan Nadamani, Chief Operating Officer at Ecom Express, stated that their company aims to leverage drone technology to improve the speed of delivery and efficiency, as well as to bring down carbon emissions.

Ecom Express is currently performing around 150 to 200 drone deliveries daily, including categories such as beauty, personal care, medicine, and fashion. After successful pilot phase completion, Ecom Express plans to expand its drone delivery services to more pin codes in Gurugram and other major cities like Bengaluru and Chandigarh.

Another firm, Garuda Aerospace, intends to use between 6,000 and 8,000 drones this year to supply 400 regions with logistical and agricultural services.

This rapid evolution in drone technology and logistics partnerships indicates a significant shift in urban delivery methods, promising faster, more efficient, and eco-friendly solutions for the quick commerce sector.

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