[h=5]Pui-Wing Tam, Bloomberg News[/h]Posted: Monday, December 2, 2013, 3:01 AM
Jeff Bezos, chief executive officer of Amazon.com Inc., said the world's largest e-commerce company was testing drones to deliver goods as it works to improve efficiency and speed in getting products to consumers.
Bezos announced the plan on CBS's 60 Minutes, showing interviewer Charlie Rose flying machines that can be used as delivery vehicles. He said the gadgets, known as octocopters, can carry as much as five pounds within a 10-mile radius of an Amazon warehouse. Amazon could start using the drones, which can deliver packages within 30 minutes, in four to five years, pending Federal Aviation Administration approval, Bezos said.
"It will work, and it will happen, and it's going to be a lot of fun," he said.
Amazon has been ramping up ways to get products to consumers more quickly as it seeks to keep shoppers coming back to buy from its Web store instead of going to brick-and-mortar retailers. Some of Amazon's most lucrative customers are members of its $79-a-year Prime program, which promises fast delivery.
To cater to them, Amazon has said it was teaming with the U.S. Postal Service to begin Sunday delivery. The company invests heavily in distribution and delivery, which made up the largest share of its expenses in the third quarter.
The company had 89 warehouses in 2012 and plans seven more this year. Amazon also announced plans in July to increase staff by 5,000 at 17 centers this year, and it will hire 70,000 seasonal workers in the United States to meet holiday demand.
On Black Friday, e-commerce spending increased 15 percent to a record $1.2 billion as more consumers opted to shop from home, according to ComScore Inc. Amazon ranked as the most visited online retail store, ComScore said.
Jeff Bezos, chief executive officer of Amazon.com Inc., said the world's largest e-commerce company was testing drones to deliver goods as it works to improve efficiency and speed in getting products to consumers.
Bezos announced the plan on CBS's 60 Minutes, showing interviewer Charlie Rose flying machines that can be used as delivery vehicles. He said the gadgets, known as octocopters, can carry as much as five pounds within a 10-mile radius of an Amazon warehouse. Amazon could start using the drones, which can deliver packages within 30 minutes, in four to five years, pending Federal Aviation Administration approval, Bezos said.
"It will work, and it will happen, and it's going to be a lot of fun," he said.
Amazon has been ramping up ways to get products to consumers more quickly as it seeks to keep shoppers coming back to buy from its Web store instead of going to brick-and-mortar retailers. Some of Amazon's most lucrative customers are members of its $79-a-year Prime program, which promises fast delivery.
To cater to them, Amazon has said it was teaming with the U.S. Postal Service to begin Sunday delivery. The company invests heavily in distribution and delivery, which made up the largest share of its expenses in the third quarter.
The company had 89 warehouses in 2012 and plans seven more this year. Amazon also announced plans in July to increase staff by 5,000 at 17 centers this year, and it will hire 70,000 seasonal workers in the United States to meet holiday demand.
On Black Friday, e-commerce spending increased 15 percent to a record $1.2 billion as more consumers opted to shop from home, according to ComScore Inc. Amazon ranked as the most visited online retail store, ComScore said.