Drone Economy How drones are changing the business world

Technology is always evolving and playing an increasing role in the lives of consumers. As a result, the industries have also changed and adapted. With the ubiquitous Internet access, businesses have gone from brick and mortar to online businesses.

In this article we present both the economic effects and the disadvantages of the drone economy. The US companies are at the forefront of commercial drone use. For this reason, the article focuses on companies from the USA.

Online businesses reduce the overheads (including rent and wages) associated with running a physical business. The great advantage of trading online is its convenience. Nevertheless, the consumer incurs additional shipping and handling costs when purchasing goods and services.

Although technology has changed a number of industries over the past 10 years, shipping and postage have remained relatively unchanged. Traditional postal service providers are still the main source of shipping and delivering goods for large online retailers.

In 2016, Amazon challenged this status quo with Amazon Prime Air. Amazon Prime Air is a drone delivery system that provides package deliveries in 30 minutes or less. The advantages: The drones could have positive financial and economic effects. The Cons: There are privacy and security concerns. These concerns have delayed the rollout of commercial drone services.

Video: Amazon Zeppelin sends out drones

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State regulations

Due to government regulations, Amazon’s launch of unmanned air supply systems (UAS) has been delayed. Currently, drones are sanctioned in the US in the following areas:

  • military
  • research
  • Recreational purposes

Military drones are not subject to the same regulations as research and recreational drones.

At the moment, unmanned aerial systems in the USA are regulated up to 120 meters in height in populated areas. Commercial use of drones has not been approved by the state and is currently illegal. The state is still hesitant to approve the licenses for airspace and ground security. These would enable companies to test drone services in the United States.

Since Amazon was not allowed to research air supply within the US borders, the company has started testing the new technologies in the UK. The Federal Aviation Administration introduced new rules for drones in 2018.

Economic impact

The rapid innovation of technology has provided consumers with top quality products at affordable prices. In the past, drones were limited to military use due to their high cost and technical sophistication. Today, thanks to volume discounts, consumers can purchase drones for just 90 euros.

Gadget: SNAPTAIN A15H drone with camera

droneThis A15 drone has foldable arms and is therefore very versatile. It is portable and therefore perfect for traveling. It is also equipped with a 120 ° wide-angle 720P HD camera. The price includes two modular 800 mAh batteries.

View on Amazon

Consumer companies like Amazon have conducted research into the use of unmanned aerial vehicles for commercial purposes. Amazon Prime Air has promised a 30-minute delivery service for packages up to 6 kilograms.

Google (GOOGLE) takes a more altruistic approach. The tech giant has developed aerial drones to help protect the environment and deliver medicines to remote locations. Battery-powered drones are more environmentally friendly than delivery vans.

Commercial drone use will have an undeniable economic impact. A study has made forecasts up to 2025: The drone industry will create jobs and stimulate economic growth.

In the future, drones will also be used commercially in other areas:

  • in agriculture
  • for public safety

In the future, these areas will be even more influenced by the drone industry than trade. Drones can cover large areas, which is why they are used in agriculture to effectively irrigate crops. At the same time, they should protect the plants from diseases.

At the macroeconomic level, the drone economy could create more than 100,000 jobs. First and foremost, many jobs will be created in production. The state could also benefit from tax advantages resulting from increasing economic growth.

EXTRA: drone manager? 10 jobs of the future [infographic]

The effects clearly have positive effects on businesses and consumers. Consumers benefit directly from new jobs, which leads to additional income. Commercial drones could also save the industry by:

  • inexpensive inventory management
  • facilitated transport
  • inexpensive distribution

Disadvantages of the drone economy

While the financial impact of the drone economy is positive, numerous consumers, states, and regulators believe drone use is harmful.

The widespread use of drones could increase public concerns about data collection by businesses and government agencies. Amazon drones use a camera and GPS to navigate delivery destinations. Many find these annoying.

In addition, drone delivery services will encounter logistical barriers. Without human supervision, a drone cannot guarantee a smooth delivery. In addition, traditional postal services are liable for damaged or stolen property.

Numerous problems can also be expected with deliveries in large cities. Access to residential units in skyscrapers is an insurmountable challenge for drones. Also, wildlife such as birds are at greater risk with the larger number of aircraft.

Are drones promising for the future?

The integration of drones into national airspace will not only benefit e-commerce companies, but also industries such as:

  • agricultural
  • public safety
  • natural disaster protection

to enhance.

Google takes an ancient Turkish approach by using drones to deliver medical devices and protect the environment.

EXTRA: 10 technology trends for 2019

The economic effects of the drone economy are:

  • job creation
  • an economic growth

In the future, costs will be reduced thanks to more effective means of transport and distribution.

Trevir Nath owns shares of English and published it on June 25, 2019 on www.investopedia.com. We have translated it for you so that we can exchange ideas with our readers on relevant topics!

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