Los Angeles Times

Google offshoot’s drones to begin deliveries next month

- By Alan Levin and Thomas Black

One of the nation’s largest drugstore chains and a shipping service giant are joining forces with Alphabet Inc.’s Wing to begin a firstof-its-kind drone delivery service in October.

Walgreens, FedEx Corp. and Wing, an offshoot of Google that was the first U.S. drone operator to receive partial certificat­ion as an airline, will begin the explorator­y deliveries in the small town of Christians­burg, Va., the companies said in an announceme­nt Thursday.

The companies aim to go beyond the small-scale delivery demonstrat­ions that have occurred so far in the U.S., typically in controlled environmen­ts conducted over short ranges, they said.

“Wing has spent the last seven years developing a delivery drone and navigation system for this purpose,” Chief Executive James Ryan Burgess said in the release. “By delivering small packages directly to homes through the air in minutes, and making a wide range of medicine, food and other products available to customers, we will demonstrat­e what we expect safer, faster, cleaner local delivery to look like in the future.”

The announceme­nt is a sign of the rapid maturation of the drone industry, as multiple titans of industry race to find their place in what could become a transformi­ng technology. At the same time, the U.S. government hasn’t created a regulatory structure or formal safety standards for small, low-flying drone operations, so such demonstrat­ions continue to be conducted using waivers to existing rules.

Wing has conducted delivery demonstrat­ions, including lowering a Popsicle to a toddler in Virginia last year. But the project with Walgreens and FedEx is designed to send merchandis­e to customers on a far bigger scale.

The demonstrat­ion project is being conducted near the campus of Virginia Tech in Blacksburg and is associated with the Mid-Atlantic Partnershi­p, one of the groups selected by the U.S. government as testing entities for drone commerce. While demand grows for the use of drones to deliver goods and perform many industrial functions, the Federal Aviation Administra­tion is still in the process of developing regulation­s to govern them.

Wing is one of the leading companies in the race toward having robotic unmanned craft zip through the sky to people’s homes to drop off goods and has received waivers to allow longer-range flights.

Amazon.com Inc. and United Parcel Service Inc. are also developing delivery services, and a host of smaller companies, including Flirtey Inc., are experiment­ing in the field.

The partnershi­p among Wing, Walgreens and FedEx has benefits for all three in the race to exploit the drone economy.

Walgreens, a division of Walgreens Boots Alliance Inc., and other large drugstore chains have watched as Amazon and other online retailers have chipped away at their sales; the convenienc­e of a bricks-and-mortar pharmacy a short drive away has been supplanted by a package delivered to a customer’s front door. Amazon has also moved into the prescripti­on drug business, offering patients convenient­ly packaged pills through its PillPack unit.

In response, the drugstore chains have begun offering competing services. Walgreens offers a delivery service for prescripti­ons and has partnered with FedEx to use its stores as package drop-off points. It’s also partnered with Kroger Co. on a pilot program for customers to pick up groceries at Walgreens stores.

The partnershi­p with Wing gives FedEx leverage to compete against UPS, which is using the small flying devices for revenue-generating healthcare deliveries, such as blood samples, within a hospital campus in North Carolina.

UPS is also seeking FAA authorizat­ion to operate like a small airline and expects to get that designatio­n soon. UPS Chief Executive David Abney has said the focus of drone deliveries would be the healthcare industry at first, and then the company would expand from there.

Levin and Black write for Bloomberg.

 ?? Michael Shroyer Associated Press ?? WALGREENS, FedEx Corp. and Wing, an offshoot of Google, will begin explorator­y deliveries in the town of Christians­burg, Va., in October. Above, a Wing Hummingbir­d drone f lies in an August 2018 demonstrat­ion.
Michael Shroyer Associated Press WALGREENS, FedEx Corp. and Wing, an offshoot of Google, will begin explorator­y deliveries in the town of Christians­burg, Va., in October. Above, a Wing Hummingbir­d drone f lies in an August 2018 demonstrat­ion.

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