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Drone Deliveries in Cities Not Worth the Efforts? New report sees problems with drones in cities

Drone Deliveries in Cities Not Worth the Efforts?

2015-12-01 11:26

A new report from Colliers International sees a risk of rising real estate prices and complex regulations making effective drone deliveries in larger cities impossible.

As e-commerce companies become larger and offer faster deliveries, so do their need of warehouses to run the logistics from. The new report European Retail & Logistics Insights – From Sheds to Shelves from Colliers International says as a result, warehouse prices are on the rise. In combination with EU regulations, this could lead to complicated future for drone deliveries in Europe. 

- With real estate prices on the rise and complex regulations drones can cause more problems than they are worth, said Tim Davies, responsible för EMEA Industrial and Logistics of Colliers International.

New Legislations Could Be on Their Way

The report states that it will be more and more difficult for businesses like Amazon to find appropriate storage space close to cities, since political forces usually want to use that space for building houses to live in.

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Also, the European Union has, according to Colliers, suggested more demanding legislations regarding security, privacy and data protection, that can create obstacles for drone deliveries. Instead, businesses could save both time and money if they decided to invest in already existing on-the-ground delivery methods. Colliers gives an example of Amazon, which said in 2013 that commersial drone deliveries would be implemented in some areas by 2015, something that still has not happened.

- The report says retailers could use existing delivery methods in a better way, for example the growing network of Uber-taxis in London, and more storage space in stores, said Paul Souber, Manager of Central London Retail Agency.

Johanna Allhorn

Reporter

Journalist who has previously worked for several big media oulets making both newspapers and television broadcasts. Now contributing to the editorial content on Ecomony.

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