Delivery robots offer cheap last mile delivery options compared to drones and self-driving cars, while drones offer improved access to remote and hard-to-reach locations.

Stanford Business School forecasts future applications of autonomous delivery technologies.

Date Posted
04/13/2020
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Identifier
2020-L00960

Technological Disruption and Innovation in Last-Mile Delivery

Summary Information

Last-mile delivery technologies have taken three main forms: drones, robots, and autonomous vehicles. Each technology offers its own advantages and challenges. Stanford Business School examined how each of these technologies work, what sets them apart from each other, and their application to last-mile delivery. Retailers like Walmart, with locations within five miles of 70 percent of the U.S. population, were identified as likely early adopters of autonomous parcel delivery. Since most consumers are unwilling to pay high premiums for the convenience of autonomous delivery, early adoption is likely to rely on crowdsourced carpooling strategies. Due to the increased technical and regulatory challenges, autonomous vehicle deliveries are projected to be adopted five or more years behind drones and robots.

Lessons Learned



DELIVERY DRONES



Advantages:

  • Fast / flexible delivery
  • Environmentally friendly
  • Can reach remote / hard-to-reach locations more cheaply
  • Can bypass crowded / poor roads.

Disadvantages:

  • Strict regulatory restricts
  • Safety and privacy issues
  • Capacity limitations
  • Delivery distance limitations
  • Remaining technological challenges.



DELIVERY ROBOTS



Advantages:

  • Fast / cheap / flexible delivery
  • Environmentally friendly
  • Fewer safety and privacy issues compared with drones
  • Higher capacity compared with drones.

Limitations:

  • Delivery distance and speed limitations
  • Cannot operate in crowded areas
  • Theft issues
  • Limited ability to overcome obstacles in their way.



AUTONOMOUS (SELF-DRIVING) CARS



Advantages:

  • Fast / flexible delivery
  • Low operating cost
  • Environmentally friendly
  • Cost-efficient to reach remote locations.

Limitations:

  • Strict regulatory restrictions
  • High cost of driverless vehicles
  • Many technological challenges still exist.

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