Monday, December 2, 2013

Amazon Drone Disrupting Delivery

Yesterday, Amazon announced on CBS' 60 Minutes that the company is creating a delivery service using drones. This idea is as far from normal as there is. It has created many conversations on topics such as use of drones, ways of product delivery, and other topics around the media and blogosphere. It reminds me of a recent announcement by Elon Musk in regards to the Hyperloop.

These are the kind of ideas that Keane VCC is interested in taking a look at. The side ideas that are being spawned from reactions to this announcement is where the value will be found. Will drones be able to deliver products? Are there other means to deliver products at a faster rate? What other uses of drones should be scrutinized or improved? Where are warehouses placed in relation to the importance of delivery speed?

Those individuals that are at the fore front of product delivery (think FedEx, UPS) will take this announcement, do some data analysis, make a decision as to the use of this announcement on their business, and move forward in running their business model with or without using any part of the drone announcement.   

There is a quote (possibly from Ghandi) that says, "first they laugh at you, then they ridicule you, then they fight you, then you win". This drone implementation into the delivery method will probably have those involved in product delivery somewhere between laughing and ridiculing.  It is certainly where the media and talking heads are at.

Amazon has shown in the past that it can disrupt entire markets. It also has shown that it is not afraid to fail with new ideas. The progress that Amazon has created in the market place is enormous for so many. This announcement needs to be looked at as an opportunity to create value in the market place.


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