Commercial drone deliveries go live in Reykjavik, Iceland [VIDEO]

AHA, an online food and retail purveyor in Reykjavik Iceland, has launched what could be the first fully operational on-demand drone delivery service in an urban area. While other retailers such are experimenting with delivery options, AHA says that drone deliveries are now integrated into its delivery network, and that it expects to increase the number of deliveries in the weeks ahead.

The drones are reducing costs by up to 60 percent and shaving up to 20 minutes off of longer deliveries.

While AHA’s drone-delivery model certainly breaks ground, it’s not clear that the drones are fully autonomous. Flytrex, the drone delivery company working with AHA, said that drones will “be handled by specially trained AHA representatives, guaranteeing safe and fool-proof deliveries every time.”

After picking up orders from stores, the drones fly across a body of water that separates Reykjavik, delivering the packages to a AHA employee at a base on the other side. That means they don’t actually achieve the holy grail of logistics – autonomous last mile delivery.

The project took off after the Icelandic Transport Authority allowed drones to transport redeliveries from restaurants and stores on one side of Reykjavik, and fly them to a designated drop-off point in the suburb of Grafarvogur, where AHA would then handle the last mile.