How UPS Surpassed Rivals in Delivery Drones

In a CBS News article, Guidehouse Insights discusses UPS’ drone approval by the government and what it means for the future of drone delivery

The United Postal Service (UPS) recently won an airline certificate from the Federal Aviation Administration. This is the first U.S. company to get broad approval and will allow UPS to expand drone deliveries on hospital campuses and taking it one step closer to delivering directly to consumers.

In a CBS News article, Guidehouse Insights’ Ryan Citron, senior research analyst, discussed what this means for UPS and the broader drone delivery industry. 

While UPS was not the best-known player in drones – "Bezos gets more headlines," Citron noted – the company went about launching its subsidiary and seeking FAA approval. UPS has jumped ahead of rivals by being able to offer services in hundreds of campus settings.

Citron said that UPS' performance on hospital and college grounds will help determine how quickly regulators will approve consumer deliveries.

"If everything works well, it gives them legitimacy to move into the residential space more quickly," Citron said, "But if there are some major crashes or incidents it could slow down the approval process. It's going to be an important test bed."

Read the CBS News Article
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