Drone-delivered groceries descending into Cincinnati
UC economist breaks down the benefits and risks of drone delivery
Walmart is bringing drone delivery to Cincinnati, 700WLW reported.
Host Scott Sloan spoke with Michael Jones, associate professor of economics at the University of Cincinnati's Lindner College of Business, for a look at what it means for Cincinnati shoppers.
Jones said that Cincinnati-based rival grocer Kroger had tested implementing drone delivery in Ohio already, but discontinued its pilot program.
“Being able to deliver this technology right in the heart of where Kroger’s headquarters is a message that [Walmart is] trying to send,” Jones told 700WLW. “The technology is at least ready for attempting a larger-scale deployment.”
Regulatory and economic aspects are the biggest factors to see if Walmart’s drones will become a mainstay for on-demand groceries. Jones said that right now, drone delivery is more expensive than just utilizing third-party delivery apps. Not to mention the regulations needed to curb noise complaints.
“It’s really a question over these next few years: Can the industry get those drone delivery costs down enough to justify the investment?” Jones said.
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Featured image at top of a drone delivering a package. Photo/Adobe Stock
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