Drone Delivery Canada Leaps Ahead Of Amazon Prime Air And Google Wing

Ron Struthers profile picture
Ron Struthers
2.4K Followers

Summary

  • Amazon Prime Air is mostly hot air.
  • Working with regulators is the key to progress.
  • Google and Drone Delivery Canada are leading the charge.
  • Early movers will own the flight paths.

Introduction

There is little doubt that drone technology will be a big part of our future. Drones can be used for search and rescue, crop surveying, areal photography, military, border patrol and much more. What has gained the most attention and press is drone delivery. Companies like Zipline, Flytrex, Matternet, Flirtey, Amazon (AMZN) and Google (GOOG, GOOGL) are focusing on drone delivery solutions. From an investor's perspective, the challenge is finding a good leveraged investment to this new technology. The main players I have listed here are private and in the case of Amazon and Google, drone delivery is not material as an investment. This is why investors might want to pay close attention to Drone Delivery Canada (OTCQX:TAKOF). In this article I will look at three public companies in the drone delivery space.

Amazon Prime Air is still stuck in the Hanger

Amazon is a leader in e-Commerce sales, but they are struggling to keep their delivery costs under control. It is obvious from the chart below that Amazon's shipping and fulfillment costs have been rising steadily from around 17% of net sales to over 25%.

(Source:statista.com)

These rising costs are a real challenge. Amazon is making progress with warehouse automation and gaining more control over their delivery process, but their approach with delivery drones has a serious flaw from the onset.

On December 21, 2018, the Chicago Tribune reported that Amazon will lease 10 Boeing 767 planes, bringing its total fleet to 50 with the goal of getting orders to people faster and more reliably. Amazon acquired Kiva Systems for $775 million back in 2012 and since then has been steadily investing in a robotic future. While this is some great progress with robotics and inventory management, Amazon believes drone delivery could really improve efficiency. At this point

This article was written by

Ron Struthers profile picture
2.4K Followers
I retired at an early age from IBM, as a System, Business and Inventory analyst and began investing over 40 years ago. I began the Struthers' Resource/Tech Stock Report just over 27 years ago by popular demand from colleagues. I started writing on Seeking Alpha about 5 years ago. Successful investing is a marathon, not a sprint. I believe in a well diversified portfolio in different sectors and diversify within those sectors. I look for value, trends and under known/owned stocks. Technical analysis is key to establish buy and sell levels. I have been able to constantly out perform benchmarks with my approach,

Disclosure: I am/we are long TAKOF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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