Business plan to implement one-hour on-demand delivery service by drones
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hdl:2117/174404
CovenanteeIllinois Institute of Technology
Document typeMaster thesis
Date2016-07
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Abstract
Delivery of goods by drones in populated areas is a reality that we will see soon in our cities. Currently, there are some startups that offer one-hour on-demand delivery in the main cities of the world. Sizable parts of the population that are living too far from big cities do not have access to this service. The use of drones for commercial delivery can change this, and make one-hour delivery a reality to this part of population. Some of the local shops in these places do not have online services and most of them currently do not have the ability to make home deliveries. So the purpose of this project is to study the feasibility of an online platform where local shops can offer home delivery to their customers. This online platform called E-Drone, will have operators who will be responsible for flying the drones from the local shops where a product has been bought, to the delivery location specified for our client. On the other hand, the E-Drone will also provide a P2P or P2B delivery service. This project aims to help local shops become more competitive against big firms like Amazon that are making local shops disappear. Using drones to make home deliveries, local shops will be able to increase their sales, but with low cost, providing greater benefits to the customers and themselves. With the model defined in this project, the one-hour on-demand delivery service could be launched in cities with population of approximated 80,000 thousand higher. An initial investment of 1.6 millions dollars is needed to enter a market and it is expected to start generating positive cash flows in the third quarter of the third year.
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