Sunday, August 31, 2014
Question is not who wins and what makes it a winner, it is what keeps it a winner?
We all are well aware of the next generation, fulfillment research and test areas of the two best companies, Amazon and Google. Yes, I am talking about Amazon's Prime Air and Google's Project X.
Even before the legal permissions are in place Amazon officially announces the cutting edge news: 'The goal of this new delivery system is to get packages into customers' hands in 30 minutes or less using unmanned aerial vehicles.Putting Prime Air into service will take some time, but we will be ready as soon as the FAA grants permission.'
However, Google is taking its rivalry against Amazon to the skies.The search giant’s X laboratory division is developing drones that can handle deliveries, a move that would be in direct competition with the e-commerce company that is testing its own shipment service using self-flying machines. Google’s initiative, called Project Wing, aims to use drones to drop off goods quickly.
The company said it’s been exploring the use of unmanned aircraft for about two years. Its disclosure of the project pits it in a race with Amazon, which announced late last year its own plans to test drones to deliver goods. The two companies are increasingly competing with each other as they target companies as well as consumers to sustain growth.
The hyper-fast delivery space is already crowded. Google recently launched Shopping Express for same-day deliveries in New York and Los Angeles. eBay Now started making local deliveries nearly two years ago. Walmart To Go will deliver your groceries right to your door. Smaller startups — like Instacart, Postmates, and WunWun — give customers the option of getting anything instantly.
Once the giants receive a green signal from the Federal Aviation Administration, the birds will be out racing for deliveries. Since it is the next big thing in fulfillment sector, the first company to make it happen will have an edge over the other.
However, what are the opportunities and chances that the company realizing the breakthrough will maintain that edge? Where would the companies go next after drones, for efficient fulfilment options without reaching a saturation or stagnation point?