Regulators Approve Amazon.com, Inc. (AMZN)’s New Delivery Drone Test Program

U.S. regulators have given new approval for Amazon.com, Inc. (NASDAQ:AMZN)’s drone delivery test. The company had expressed frustration with the existing federal drone authorization that didn’t seem to be helpful for its program. Amazon had to turn to some favorable locations outside the U.S. to try out its drone delivery service.

Read why analyst may see a swing in the momentum for AMZN.

Drone to fly faster and higher

At least one major hurdle has been cleared for Amazon.com, Inc. (NASDAQ:AMZN) in its aggressive efforts to automate deliveries using commercial drones. The latest approval means that the online retail provider can now fly its drones at speeds of 100 miles per hour and keep them off the ground as high as 400 feet. The approval came from the Federal Aviation Administration (FAA).

The latest development is important for Amazon.com, Inc. (NASDAQ:AMZN) in enhancing its shipping service. The FAA approval that existed earlier was more restrictive as it only allowed for flying certain drone models, which according to Amazon, were no longer in use.

Testing in other countries

As Amazon.com, Inc. (NASDAQ:AMZN) battled FAA’s restrictive drone authorization, the company had to turn to other countries to test its drone delivery service.

Drone delivery trend

Amazon.com, Inc. (NASDAQ:AMZN) will use the drone to speed up small package deliveries as the company also tries to woo customers with its quick delivery services. Other online retailers are also experimenting with drone deliveries. Alibaba Group Holding Ltd (NYSE:BABA) is one of the major online retailers attempting to tap into the power of drone to overcome certain delivery barriers.

As competition heats up in the online retail segment, operators are turning to technology to differentiate their services. Fastest delivery is something that Amazon is trying to make its second nature because it is both great for winning customers and boosting revenue.

Amazon.com, Inc. (NASDAQ:AMZN) seems to be looking for more ways to make customers stick with it even as Jet.com promises to give it a run for its money as the lowest cost online retail platform.

About the Author

Cooper is a graduated from Buffalo State College in New York with a bachelor's degree in Broadcast Journalism.

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