By designating it an “air carrier,” the Federal Aviation Administration (FAA) has allowed Amazon to operate a fleet of delivery drones under a trial program in the United States. Still, significant hurdles remain for Amazon Prime Air—in large part because the FAA has yet to finalize regulations governing delivery drones. (Bloomberg)
Talking point: With the FAA approval, Amazon joins Alphabet’s Wing subsidiary and UPS in the continued quest for pilotless drone delivery. The company, which announced its drone program in 2013, has pitched drone delivery as a net benefit for the environment. Dispensing with human delivery would also further fatten Amazon’s bottom line; the company spent over US$13.6 billion on shipping in the second quarter of 2020 alone. There are nearly 1.5 million drones and 160,000 remote pilots registered with the FAA.