Drone deliveries to revolutionise quick commerce in urban areas by 2027

By 2027, drones will handle approximately 30% of all quick commerce deliveries in major cities

magine having your next online shopping package delivered by a drone. It might seem like a distant possibility, but with the rapid expansion of quick commerce in urban areas, drone deliveries could soon become commonplace.

Industry forecasts suggest that by 2027, drones will handle approximately 30 per cent of all quick commerce deliveries in major cities, according to a report by the Financial Express.

This is due to the substantial advantages drone deliveries offer to quick commerce enterprises.

The report quoted Rohan Dani, investment professional at BlackSoil, as saying, “For quick commerce players, drones can cut delivery times by up to 50 per cent, slashing costs by 30 per cent.”

 

The operating costs for drone delivery services are significantly lower, ranging from 40 per cent to 70 per cent, compared to traditional vehicle delivery services. Several logistics companies, including Ecom Express and Shiprocket, are exploring drone delivery options through collaborations with drone startups that provide drone-as-a-service, the report said.

How do drone deliveries work?

Drone delivery operations are straightforward. These startups establish sky pods in residential areas, where drones, capable of carrying parcels weighing up to 10 kg, land. A delivery executive, commonly referred to as a skywalker, is stationed at these pods to pick up the parcels and deliver them to customers' homes, the report stated.

For example, Skye Air, a drone startup, has collaborated with around four logistics firms to deliver packages to residential communities in Gurgaon. The company has established sky pods in more than 70 mapped residential areas. Currently, drones are actively servicing three of these communities, handling around 1,000 packages daily. The startup aims to increase this capacity to over 10,000 packages per day across over 100 residential communities in the National Capital Region (NCR) by the end of the year, the report said.

The report quoted Ankit Kumar, founder and chief executive officer (CEO) at Skye Air Mobility, as saying, “The goal of the company is to make last mile logistics faster, more sustainable, more efficient and cost-effective moving forward, every package that we deliver."

Environment-friendly deliveries

The report further said that each package delivered by a drone can reduce carbon emissions by around 520 grams. Therefore, with 1,000 deliveries daily, we can save nearly 80 tonnes of carbon emissions.

Moreover, the civil aviation ministry is expected to introduce several initiatives aimed at accelerating the mainstream adoption of drones. Currently, drones are permitted for various services such as vaccine delivery, inspection of oil pipelines and power transmission lines, anti-locust operations, agricultural spraying, surveying mines, and land mapping, the report said.

Rise in drone deliveries

In August 2023, logistics unicorn Shiprocket started drone delivery trials, currently handling over 5,000 monthly deliveries in Gurugram.

Saahil Goel, managing director and chief executive officer (CEO) of Shiprocket, said that these trials provide crucial data to enhance delivery systems for better efficiency and reliability.

Logistics startup Ecom Express identifies greater potential for drones in long-distance deliveries. The company is currently testing drones for same-day delivery (SDD) and next-day delivery (NDD) services.

“By leveraging drone technology, we aim to enhance delivery speed, improve efficiency, and reduce carbon emissions,” Vishwachetan Nadamani, chief operating officer (COO) at Ecom Express, said, as quoted by the report.  

Ecom Express is currently performing around 150 to 200 drone deliveries daily as part of its trials. The deliveries include various categories such as beauty, personal care, medicine, and fashion. Following the successful completion of the pilot phase, the company plans to extend its drone delivery services to additional pin codes in Gurgaon and subsequently to other major cities, including Bengaluru and Chandigarh.

Another startup, Garuda Aerospace, intends to deploy nearly 6,000-8,000 drones this year. These drones will provide agricultural and logistics services across 400 districts.