Wal-Mart Stores Inc. recently joined the trend of using drones for delivering products. The move of the world's largest retailer came amid the growing race with online competitors such as Amazon.com Inc. and Alphabet Inc.'s Google.
On Monday, Wal-Mart Stores Inc. asked the U.S. Federal Aviation Administration for permission to test drones for home delivery, curbside pickup and checking warehouse inventories. For several months, the company has been conducting indoor tests of small unmanned aircraft systems. They are also planning to use drones manufactured by SZ DJI Technology Co Ltd. of China.
Now, as Wal-Mart seeks to test the drones outdoors for the first time, here are 4 reasons why the company opted the use of the machines.
1. For more efficient distribution system
Wal-Mart's plans to use drones aims to provide better and more efficient distribution systems. According to Reuters, the world's largest retailer by revenue is asking U.S. regulators for permission to use drones in deliveries to customers at Walmart facilities as well as to consumer homes.
"Drones have a lot of potential to further connect our vast network of stores, distribution centers, fulfillment centers and transportation fleet," Wal-Mart spokesperson Dan Toporek said. "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."
2. For the idea of curbside pickup
Wal-Mart has envisioned a wide range of potential uses for testing drones, which are in two types: Phantom 3 and S900. Toporek said the tests would determine if drones could deliver products from a store to a farther point like in its parking lot, as per The New York Times. This idea aims to improve convenience for customers, making grocery pickup possible without even entering the store.
3. For gathering of aerial data
According to Wal-Mart, data acquired from its drones could be useful for business analysis. The drones could gather photos, video or other data from infrared and chemical sensors. Thus, several companies have been using these machines to better manage their operations, which is also the same purpose Wal-Mart seeks. The Washington Post has also learned that the company also wanted to launch some tests over their large tracts of rural land.
4. For home deliveries
Wal-Mart is also seeking permission to have drones take off from delivery trucks, which will bring goods to a home and then return to the truck. While FAA is finalizing regulations to allow more comprehensive commercial drone flights, the company is also planning to obtain permission from the homeowner, as well as any other property owners in the path of the drones, Bloomberg Business revealed.
Moreover, Wal-Mart said it wanted these tests to occur at small residential neighborhoods in the United States. Meanwhile, Wal-Mart's move came as investors grew impatient with the company's slow growth after shares declined 32 percent this year.
