Walmart Wants Drones - Or Anything Else That Will Help It Compete With Amazon

Walmart, despite its hokey image, has always been a leader in technology, arguably one of the key factors in its amazing growth. The retailer's inventory management and logistics advances have been benchmarks for virtually every other business in the world.

But it's interest in drones is less about their specific utility and more about placing a number of bets on futuristic tactics that may help it get more product to consumers faster as the pace of online shopping intensifies. JL

Nicole Leinbach-Rehle reports in Forbes:

The Walmart news shows just how rapidly e-commerce delivery is evolving. Whether it’s drones or Uber, consumers will be getting their packages in a much different way in a few years. Right now, retailers are making bets on multiple alternatives because it’s not clear which will emerge as the winner."
A recent white paper report from Walker Sands Communications revealed that 80% of customers would be more likely to shop with a retailer that offers drone delivery to their doorstep within an hour, with 77 % of customers identifying that they would be willing to pay for this type of service. This data is timely considering Walmart just announced their plans to begin testing ariel technology to help with customer deliveries as well as store operations. Their first step in this process took place Monday, when they submitted an application at the Federal Aviation Administration that asks for an exemption from current drone regulations.
Dave Parro, partner and retail technology practice lead at Walker Sands Communications, believes that although Walmart isn’t the first retailer to enter this space, Walmart is still well positioned to help lead the way.

Amazon and Google GOOGL +0.41% clearly have a head start on drone technology, but Walmart could catch up by the time the FAA allows them to be used for deliveries. More importantly, the Walmart news shows just how rapidly e-commerce delivery is evolving. Whether it’s drones or Uber, consumers will be getting their packages in a much different way in a few years. Right now, retailers are making bets on multiple alternatives because it’s not clear which will emerge as the winner,” explains Parro.

Having options is ideal for any business, which is why Walmart taking steps to enter the drone space is a smart move for a retailer known for it’s affordable prices and quick delivery services. Keeping this in mind, it’s no surprise Walmart wants to be among the first retailers to reach consumers in what is bound to be the way of the future. As Parro further explains, companies that embrace emerging trends have the opportunity to gain more business.

Jumping on emerging trends such as drone delivery will help organizations position themselves as leaders in the e-commerce space, helping to them to steal business from competitors not yet able to meet new-age expectations of fast delivery,” Parro states.

Once approved by the FAA, Walmart aims to test the various ways in which drones can help them achieve faster deliveries as well as gain a stronger understanding of their warehouses, buildings and distribution centers by using drones as surveillance cameras. As part of the exemption request, Walmart also stated they believe ”consumers could be better served” if they were able to engage in drone testing.
The drones Walmart has announced they would plan to use are Chinese made DJI drones - one of the world’s top drone companies. And while no specifics are available yet as to what types of items would be suitable for drone delivery, the Walker Sands Communication study “The Future of Retail” revealed that 88% of consumers would trust drones with delivery for at least one kind of product, with the most popular items being books (74%), clothing and apparel (73%) and pet items (54%). 66% of consumers think they will receive their first drone-delivered package in the next five years, while 36% expect their first drone delivery in the next two years.
As always, time will tell as to what happens next. But the future – for sure – has drone delivery via Walmart undoubtedly in it.