UPS Testing Drone Delivery in US as Pressure on Margins Increases

United Parcel Service is in the early stages of testing drone delivery. The package delivery company faces pressure on margins, chief financial officer Richard Peretz recently admitted at an investor event.

UPS is considering raising prices. But drones may offer a partial solution.

The company is hoping drones could help with residential deliveries, especially those in rural areas, which have increased as ecommerce continues to rise—but are often less logistically efficient than delivering to offices. UPS this week launched an autonomous drone in Florida.

The test was successful, according to the company. But it was little more than “an exploration into this new technology,” as John Dodero, vice president of industrial engineering at UPS, put it.

It was not UPS’ first drone test, however, and it certainly will not be the last. However, the company will not yet offer a timeline for when drones may reach mass-market use.

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