Tomahawk, WI 09/02/2014 (Basicsmedia) – Amazon.com, Inc. (NASDAQ:AMZN) is not the only company that will continue dreaming of a drone delivery service. Google Inc. (NASDAQ:GOOG) has thrown itself into the space having announced that its advanced research division, Google X, will be developing drones for delivering goods.
James Temple, Senior Editor at Re/Code in an interview on CNBC said that Amazon.com, Inc. (NASDAQ:AMZN) and Google are trying to reinvent how distribution is done’ in the retail space. The move is expected to ensure timely and effective delivery of goods.
“If you get drones to the point where they can ship products in, you know, half an hour which is what Amazon.com, Inc. (NASDAQ:AMZN) has been saying or now Google Inc. (NASDAQ:GOOG) talking about delivering something across town in minutes. You know that really does close the gap between buying something in Amazon and driving to Wal-Mart to get it that very day,” said Mr. Temple.
The use of drones is expected to affect retailers as traffic to brick and Mortar stores is expected to be considerably affected. People would mostly order goods from the comfort of their living room and have them delivered at their door steps. Temple believes that the use of Drones by retailers is a technical attempt of trying to ensure efficient and timely delivery of goods regardless of location or terrain.
Google Inc. (NASDAQ:GOOG) and Amazon.com, Inc. (NASDAQ:AMZN) as of the moment have to deal with the fact that drone technology has not yet been fully tested in populated areas, as well as commercial use of Drones has not been approved by authorities.
“In my mind I am comparing it to the internet versus Newspapers. It makes more sense to be able to deliver a product in as the crow flies directly across town to exactly where it needs to be without having to idle in traffic or anything else and drop it precisely where it needs to be,” said Mr. Temple
Technical and regulatory challenges remain the biggest headwind for Google Inc. (NASDAQ:GOOG) according to Mr. Temple waiting to see the impact of the technology and how it will affect the distribution of goods by retailers in the U.S.