Amazon's Prime Air drone delivery service is set to expand to nearly 500 U.S. cities and towns by the end of this year — a major milestone 13 years after Jeff Bezos first showed off a drone prototype on CBS's 60 Minutes in December 2013.
At the time, Bezos estimated the technology was at least four or five years away and that FAA approval would be one of the biggest hurdles. Both the technology and the regulations took far longer than anyone expected.
The expansion will bring drone delivery to metro areas including Chicago, Atlanta, Cleveland, and Boise, with flights concentrated in suburban neighborhoods and avoiding downtown high-rises and major airports. Each drone hub covers roughly 175 square miles.
Nearly any item weighing 5 pounds or less and small enough to fit in a large shoebox is eligible for drone delivery — translating into millions of products, as Amazon CEO Andy Jassy noted in his annual shareholder letter.
Drone delivery will be free for Prime members on orders of $50 or more. Orders below $50 carry a $2.99 fee, and non-members pay $4.99.
Amazon is not alone in the race. Walmart and Alphabet's Wing have been building what they call the largest drone delivery network in the US, adding seven new markets in June including Phoenix, Philadelphia, and the Bay Area. They plan to reach 270 stores and more than 40 million people by next year.
Noise concerns remain a hurdle for local approvals. Amazon says its drones are quieter than an idling delivery truck during drop-off and comparable to a window fan while in flight. A proposed federal rule to allow flights beyond the pilot's line of sight has not yet been finalized.
