Delivery via drone is set to change the way packages arrive and business is conducted, especially if Fengyu Shuntu Technology has anything to say about it.
The largest logistics company in the People’s Republic of China, SF Express, has announced that its subsidiary Fengyu Shuntu Technology is the first company in the country to receive permit to deliver packages via drone.
Not only is courier delivery via drone expected to massively change the industry but also it has far reaching implications for other logistical sectors according to a report from The Drive.
Fengyu Shuntu Technology has tested their aerial courier technology since July 2017 and feels confident now is the time to bring it to market.
Fengyu Shuntu Technology’s technology has long been a goal of SF Express. Using drones for a variety of applications in China has grown in recent years, with the city of Dongguan using UAVs to perform environmental checks and the AT200’s ambitious goal of becoming a large cargo transport UAV.
Where Fengyu Shuntu Technology’s drone courier services will really come in handy are the more rural and inaccessible parts of China. It is not difficult to see how this application could be expanded to other countries around the world.
But, as Drone DJ points out, the sexiest and most immediate use of the flying couriers will be for package delivery. According to Bloomber over 40 billion packages were shipped throughout China in 2017 alone and that number is expected to rise to 49 billion this year. A recent study of drone-based UAV deliveries found that delivery drones with a 2.5 mile radius used less energy per package per mile than traditional delivery methods – a potential boon for China’s goal of combating pollution. As SCMP points out, delivery via UAV is also growing in lockstep with the rise of ecommerce throughout the country as giants like Alibaba increase their market share over traditional retailers.
Shares of SF Express’ competition fell after the announcement, with Nasdaq-traded JD.com drawing particular scrutiny. JD.com first entered the large package delivery market in 2016. YTO Express Group, the parent corporation for courier service Shanghai YTO Express fell 2.4 percent. Rival STO Express posted a 1.2 percent decline.
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