Please ensure Javascript is enabled for purposes of website accessibility

FAA Clears Amazon Drones for Takeoff

By Lou Whiteman – Aug 31, 2020 at 1:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The e-commerce giant has government approval to begin delivery tests. (AMZN -2.72%) has won Federal Aviation Administration (FAA) certification to operate its Prime Air delivery drones, an important step toward the retail giant's goal of eventually automating the package delivery process.

The approval gives Amazon the all-clear to begin commercial deliveries in the U.S. under a trial program. The clearance was granted after the FAA evaluated the technologies and concluded they are safe.

An Amazon Prime Air drone in flight.

Image source: Amazon.

Amazon vice president David Carbon, who oversees the drone effort, in a statement released to reporters called the certification "an important step forward for Prime Air." The clearance gives Amazon the ability to further test and develop its technologies in real-world settings.

"We will continue to develop and refine our technology to fully integrate delivery drones into the airspace, and work closely with the FAA and other regulators around the world to realize our vision of 30 minute delivery," Carbon said.

Amazon follows United Parcel Service (UPS -1.08%) and Wing, a subsidiary of Alphabet (GOOG -2.63%) (GOOGL -2.63%), in winning FAA approval to begin drone trials. UPS has teamed with CVS Health for autonomous delivery of prescription drugs, while Wing has a similar effort under way with Walgreens.

Amazon, which has also experimented with drone delivery in the United Kingdom, did not say where it will conduct its U.S. trials.

Even if the tests go well, we are still years away from widespread drone deliveries.

Current U.S. regulations limit commercial drone activity beyond trials, and the FAA is working to craft a set of rules that would eventually allow for drone flights over crowded areas while managing air traffic and coordinating with aircraft. The companies involved also need time to continue to develop technologies that would allow for true autonomous flying, instead of needing a "pilot" at the control at all times during the drone's flight.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool recommends CVS Health and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$114.80 (-2.72%) $-3.21
Alphabet Inc. Stock Quote
Alphabet Inc.
$97.42 (-2.63%) $-2.63
United Parcel Service, Inc. Stock Quote
United Parcel Service, Inc.
$165.32 (-1.08%) $-1.80
Alphabet Inc. Stock Quote
Alphabet Inc.
$98.09 (-2.63%) $-2.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.