Mercedes-Benz, Matternet enter last-mile ‘van + drone’ delivery race [VIDEO]

The competition for low-cost last-mile solutions just heated up with the announcement by Daimler AG today that it is partnering with U.S.-based drone startup Matternet to develop drones for its delivery vans. The German auto giant will invest US$562.75 million over the next five years designing electric, networked van-drone-hybrid combos.

The announcement comes less than a week after Cincinnati-based Workhorse Group rolled out a deliver drone that is already compatible with electric package delivery trucks, some of which are already deployed in FedEx and UPS fleets. Other startups have similar designs, and e-commerce behemoth Amazon is exploring drone delivery as well.

Mercedes-Benz and Matternet have created a concept vehicle that could change the way small packages are delivered across short distances. The van’s rooftop serves as a launch and landing pad for Matternet’s M2 drones, which are autonomous. The M2 can pick up and carry a 4.4-pound payload across 12 miles of sky on a single battery charge, in real world conditions.

However, under current FAA regulations, commercial drone operators in the U.S. are required to maintain line-of-sight contact with drones, suggesting that Mercedes-Benz and Matternet are looking well into the future with their technology.

Below, the van-drone-hybrid combo in action:

https://www.youtube.com/watch?v=ve63xdzc3hg

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