Last Mile Automation: Challenges and Opportunities

Automating last mile delivery is poised for growth as direct-to-home services become essential to customers and a competitive differentiator for suppliers.

Dec 7, 2020
5 minute read

Transcription

alphabet its delivery drone operator got certified as an airline by the federal aviation administration so what does this mean well the unit called wing can now begin routine deliveries in u.s skies and they're beginning with deliveries in a pair of rural areas in virginia in a couple of months to tell us more we've got our bloomberg aviation reporter alan levin in washington so alan this is kind of a big deal what does this mean well you know it means uh that they really can start taking money for deliveries up to now they've been able to deliver things um but but uh couldn't could only do it as a demonstration so that moves it forward but but i have to say in terms of significance i i would almost say it's as important for other as for for other aspects of the drone world as well because this creates a road map for any drone company to become a a part of the mainstream aviation community and that means you know companies that want to fly these in construction sites or do long-range surveillance of things like bridges and that sort of thing it really opens up uh all sorts of commercial opportunities so what exactly are they going to be doing in virginia um i think a little bit of what they're trying to do is just test the market um the wing model unlike amazon where you you know they already are giant retailers they're going to partner with local merchants and sell items and i think you know part of what they're trying to do is see exactly what will sell and what what will not you know do people want to get an instant tube of sunscreen are they more interested in burritos it's a little bit of trial and error but but that's what they're hoping to do starting as you say in just a couple months and what about the safety issues i mean are they going to tell everyone in virginia hey something might be falling out of the sky and and going forward i mean there's still many many outstanding concerns so there are definitely concerns uh the folks at wing are going to spend a considerable amount of time in the next two three months working with the local community to try to smooth over feelings to make sure that there's no backlash but i do want to mention you know in terms of falling out of the sky the reason that the faa was able to certify uh wing's operation is that they have a high degree of confidence that their aircraft will not be falling out of the sky now you can't say that about the drones you you're you're buying over the internet for for hobby use they're not nearly as robust but this has multiple backups and that sort of thing and they've conducted thousands of flights uh some here in the u.s but a lot in australia and that's what gave faa confidence that they had a enough robust backup system so that wouldn't be happening

This transcript was generated automatically from the video's captions and may contain errors.

Autonomous package delivery systems are gearing up with Amazon, Google, UPS, and many others using their aerial drones and robots to make headlines. While people write more about how packages are transported from one distribution center to another, packages face different challenges in the “last mile” when they leave local distribution centers. For example, a specialty item that arrives from a plane to Boston, MA, will require different transportation to arrive at a private home in Billerica, MA. This latter challenge is known in the industry as “last mile delivery,” and there are challenges and benefits to automating the last mile.

Alphabet Wing Aerial Drone

Automation of the last mile with a drone or robot will eventually make the last mile safer, cheaper, and more environmentally friendly than using a truck or car. There are currently many different drone designs and no single standard. Therefore, companies can associate their design with their brand in the way many associate tissues with Kleenex. Some delivery systems already do this intentionally or not. Starship Technologies’ food delivery drone looks like a “cooler on wheels,” and Alphabet’s Wing drone, which is shown dropping off groceries and burritos with a descending and ascending hook, looks like a mini-airplane.

Starship Technologies Deliver Drone

Autonomous vehicles will still play a role in last mile delivery. Autonomous cars can travel on the road and thus go further than drones, and some deliveries are too large and heavy for small drones to carry. Some packages may make both the short and long hauls in the same truck, and firms such as UPS illustrate that some deliveries can combine drone and truck deliveries. For the companies, autonomous package delivery offers multiple benefits since it allows firms to be flexible when package delivery is impractical given current delivery systems. For example, rural areas are often underserved because businesses find it too expensive to send drivers and their vehicles to make one delivery. This gives companies a way to deliver groceries and crucial medicine during an epidemic. One is delivering prescription drugs in Houston with CVS, UPS is doing so with CVS in Florida, and Wing is teaming up with FedEx and Walgreens to deliver over the counter medicines in Virginia).

Nuro Driverless Delivery Robot

Not all last mile solutions have to be purely autonomous. The gita, for instance, is a short, round robot that can carry pizza, party supplies, or any other material up to 40 pounds (about 18kg) while trailing a person. It is being marketed more as a robo-butler than a delivery mechanism, but as a last mile delivery system, it could be used as a convoy to help a deliveryman “carry” more goods.

Opportunities abound for the last mile

Automating the last mile is a new project, which means there are many kinks to work out. These drones need to be visible. Nuro’s unmanned R2 is the size of a car and easily visible, but other robots are quite small. Smaller vehicles such as Starship’s robots are below eye level and can be tripping hazards. The 30 inch (76.2cm) Amazon Scout is designed to blend into the environment with its blue hue and relatively unremarkable design, but it flashes lights to tell people it is crossing the street. It may not be enough, especially when it goes on the road. Aerial drones themselves need to be visible to humans, fowl, air traffic controllers, and airships. While few discuss this possibility, companies also need to ensure the drones do not accidentally drop their packages or themselves on the customers’ vehicles, houses, or heads.

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You cannot have package delivery without the actual delivery. Where a package should be delivered is not always obvious. Sometimes the package should be delivered to the end of a long driveway, sometimes to the front door of a house, and sometimes to an apartment on the tenth floor. One solution is for the company to require a human receiver; Starship’s robots only unseal their top when the receiver uses the smartphone app to open it, and Amazon asks that people take the packages out of the Scouts themselves. Alphabet’s Wing uses a hook to drop off and pick up deliveries with the person below doing delivery and pick-up. As a result, many of these services focus on deliveries where they can guarantee a human will pick up the item on delivery, using signatures, cameras, and/or smartphone apps to verify delivery. Eventually, companies will need to figure out how to deliver packages without human intervention; it is conceivable a drone could deliver a package to an apartment balcony on the tenth floor.

Last mile delivery faces the important challenge of stabilizing the packages themselves, particularly when food is involved. It is one thing for a drone to carry a book or football, but when delivering a pizza, you want to make sure the toppings remain on the pizza. Terrestrial robots such as the Starship robot can handle food more easily, but even they need to keep the food in the container, and even a gita carrying a compact laptop can run into a pothole.

Last-minute delivery is not a science fiction concept; it is already here. Some of these companies are still in the pilot stage, but firms such as Flytrex are already serving almost half of Reykjavik, Iceland, and UPS has the U.S. Federal Aviation Administration’s approval to fly as many drones as it wants. Autonomous and semi-autonomous package delivery systems are not yet ubiquitous, but they will be. This ubiquity offers many opportunities to companies. Restaurants may want to consider either having their own drone fleets or renting someone else’s. Autonomous vehicle owners could rent out their vehicles to package delivery services while not using them. Companies need to be aware of regulation before making a large investment. For example, towns might start limiting how many sidewalk robots can be on sidewalks. Private citizens may also want to own drones to pick up their packages. This is a whole new world of opportunity.

Alexander Soley

Alexander Soley is an Independent Consultant who specializes in strategy and analysis in technology innovation from a commercial and regulatory perspective. He has a special interest in autonomous and connected vehicles and how they will affect society. He has experience with enterprise storage, cloud-native applications, digital twins, and regulating the Internet of Health. He has a background in international relations and business and has experience with both start-ups and a Fortune 500 company.

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