Amazon.com, Inc. (AMZN) To Launch Drone Delivery In India First, Not US

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Amazon.com, Inc. (NASDAQ:AMZN) will apparently be launching deliveries using drones in India and not in the U.S., a report from The Economic Times India stated. The revelation about Amazon.com, Inc. (NASDAQ:AMZN)’s plan comes after Jeff Bezos, the company’s founder and CEO, surprised CBC’s Charlie Rose and the “60 Minutes” crew in December last year by saying that his next plan is to deliver packages to customers using drones called ‘Octocopters.’ The plan is supposedly named Amazon Prime Air and will let users get their packages in 30 minutes after checkout.

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According to The Economic Times India, two unnamed “people aware of the development” told them about Amazon.com, Inc. (NASDAQ:AMZN)’s plan to first launch its drone delivery in India rather than the U.S. Furthermore, these sources reportedly told the publication that the launch will likely be in Mumbai and Bangalore where the internet retail giant has fulfillment centers.

Moreover, the launch of Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Air drone delivery in India may come as early as the Diwali festival of lights, the sources said, which will be held sometime this October to November in the country.

The Economic Times India said in the article that the drones planned to be used by the technology giant weigh less than 25 kilograms and will be able to reach speeds of more than 80 kilometers per hour. These machines will be able to carry up to 2.26 kilograms, the report added, which is about 86% of all merchandise being sold by the retailer.

The move is seen by the publication as Amazon challenging Flipkart as the number one electronic commerce retailer in India in an industry that is said to be estimated to be worth Rs 50,000 crore (about $8.24 billion) by 2016.

The decision to stage the Amazon.com, Inc. (NASDAQ:AMZN) Prime Air launch in India may be because of the country’s lack of regulation for drones, the publication noted.

Watch the video of Bezos explaining Prime Air delivery on ’60 minutes’ below.

Disclosure: None

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