Amazon's long-delayed drone delivery faces challenges scaling up and securing airspace access in Europe
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Amazon plans to launch delivery drones in the UK and Italy by 2024, 10 years after first announcing the idea. Progress has been slow, with only 100 deliveries in the US so far.
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Drone delivery works for medical supplies to remote areas, but is expensive for consumer goods in cities. Amazon aims to drive down costs through scale.
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Cities may restrict drones in populated areas or allocate limited airspace through bidding, reducing Amazon's advantage.
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A natural monopoly could emerge, requiring regulation to prevent abuse, like with water infrastructure in the UK.
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Equal access for competitors at fair prices risks eroding the logistical dominance underpinning Amazon's current success.