Companies such as Amazon, Google, and JD compete to be the first to produce an efficient drone delivery system and consequently control a big chunk of the market. The premise that people can have their recently bought, products delivered at their step in a matter of hours and minutes hungers new investors. It is a brand-new way to value e-commerce and, most likely, grow sales numbers. While American companies still struggle against the American government to have their airspace restrictions revised, Chinese companies to not face such difficulties with their government. Therefore, in the race to become the very first e-commerce company to successfully implement a drone delivery service on a larger scale, China is fast outgrowing American companies.
JD.com is building around 150 drone launch facilities in southwestern Sichuan province for Unmanned Aerial Vehicle (UAV’s) package delivery. After successfully securing government approval in a set of Chinese provinces, JD.com is ready to lead commercial drone innovation. The company aims to have these facilities ready by 2020 and consequently improve delivery efficiency in remote areas in China, as well as decrease the current delivery costs by trunk. JD.com CEO Richard Liu said this type of Unmanned Aerial Vehicle delivery will allow the costs of shipping to be 70% cheaper; amazing news for consumers and sellers.
Contrary to Amazon, JD.com is not focusing their drone delivery service in big cities and massive urban areas. Instead, the company targeted rural areas, far from these megacities with a high number of population.