Workhorse beats Amazon to commercial delivery

Commercial drone deliveries could be closer than anticipated, according to Cincinnati-based Workhorse Group, which operates an eight-rotor “octocopter,” also called “HorseFly.” The delivery drone is designed to be used in tandem with electric package delivery trucks, some of which are already deployed in FedEx and UPS fleets.

The latest Workhorse drone weighs 15 pounds, empty, and has a 10-pound payload. It has a maximum speed of 50 mph, and can remain aloft for 30 minutes, according to the company.

Earlier this week, the FAA released rules governing commercial drone operation. Unmanned aerial vehicles (UAVs) must be flown during daylight hours only, at no more than 400 feet above the ground, and remain within eyesight of the operator at all times. The FAA also requires a license to operate. That said, formalization of the marketplace has been welcomed by operators, who have lined up for licensing.

Workhorse group, which claims to have beaten Amazon to the punch, has a drone-delivery model that works under the FAA’s guidelines, whereas Amazon has been confounded by the line-of-sight requirement. “We launch from atop the truck, and efficiencies are not as good as … just launch[ing] from 30 miles way, but they are staggering,” explained Steve Burns, chief executive of Workhorse. By concentrating on the last mile or less of the delivery, Workhorse is able to conform to the FAA’s line-of-sight rules. “At two or three cents a mile, which is the electricity these drones use, the efficiencies are just remarkable.”

“Like a lot of new technologies, you kind of go for the low hanging fruit,” Burns added. “And the long distance out in rural [and suburban] areas – that’s the longest cost-per-package because it’s not very efficient for the driver or the truck.” From there, he described, a drone can be sent to a central landing location, such as the top of a building, where customers can pick up their packages. “It could get that precise,” Burns added.

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