News

Watch out Amazon: Wal-Mart prepping drone delivery service, seeking fed's approval

Amazon's drone service will have a big competitor as Wal-Mart is seeking federal approval for such delivery approach as well.

October 30, 2015

Count Wal-Mart in on exploring drones for home delivery as the world’s biggest retailer is asking federal regulators for approval to start running tests to provide customers with such a service as well as using drones for curbside pickup and warehouse inventory tasks.

The move is a direct competitive action against Amazon, the leading online retailer, which has already been testing drones for delivery. Wal-Mart, according to a Reuters report, has been doing indoor tests of the drones made by China-based SZ DJI.

Wal-Mart’s formal request to the Federal Aviation Administration specifically notes it wants to use drones for both internal operations and consumer delivery. The FAA has indicated it hopes to complete drone use regulations within the next 12 months. Amazon will put drone delivery into service once FAA rules are approved, notes Reuters, but Wal-Mart doesn’t expect to be too far behind.

"Drones have a lot of potential to further connect our vast network of stores, distribution centers, fulfillment centers and transportation fleet," Wal-Mart Spokesman Dan Toporek told Reuters. "There is a Walmart within five miles of 70 percent of the U.S. population, which creates some unique and interesting possibilities for serving customers with drones."

The quest for faster, cheaper and more efficient product delivery is a competitive point for retailers and could shake up market factors as both titans are already viewed as extremely competitive in pricing.

In related retail commerce news, Amazon may be prepping a shopping channel via the TV shopping network strategy, according to Geekwire.

Reportedly the channel will let shoppers order right off an interactive screen, in a way Fire TV lets shoppers do today with product banner ads. Several weeks ago Bloomberg reported the online commerce tian may also be launching a live TV service in which it would live-stream content from media conglomerates such as CBS and NBC Universal.