Drones can cut last-mile delivery costs from a few dollars to a few cents. They can be used to inspect hard-to-reach assets like pipelines and map thousands of square miles of land.
Venture capitalists have invested $US2.6 billion ($3.8 billion) in drone companies in the past seven years, according to aerospace analysis firm Teal Group. In theory, the sky should be littered with unmanned aerial vehicles. Yet they remain the preserve of hobbyists and the military.
The two sticking points are public appetite and restrictive regulation. Commercial drone registrations are outpacing non-commercial and could triple in the next four years, according to the Federal Aviation Administration.
But in the US, a remote pilot certificate is required to fly drones. They cannot operate over people or at a height above 400 feet. Such restrictions are proving difficult for start-ups to work around.
Airfare raised more than $US100 million before shutting last year. 3D Robotics in California lost its fight against cheaper hardware drone-makers in China and refocused on software.
No US company can match the huge scale of China’s Shenzhen-based drone maker DJI. It has three quarters of the world market, according to Skylogic Research. US companies interested in using drones largely opt to customise DJI models.
By 2024 the commercial drone market should reach $US17 billion, according to a new report from Global Market Insights. But without FAA approval, company drone use will be limited. Amazon made its first commercial drone delivery in 2016 but customers await a national rollout.
The answer is to focus on good causes. Like the “unbanked”, the undelivered is a huge market. Adults in areas with poor transport are an appealing group for airspace delivery.
Who would object to the delivery of life-saving remedies or organs? UPS has tested medical sample delivery. California robotics start-up Zipline, which transports blood and vaccines in Rwanda and Ghana, has been valued at more than $US1 billion. These drones, offering clear public benefits, are a good place to start for mainstream acceptance.
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