Title of the Mini Project

(Drone Delivery-Make a Step Ahead for Future)

in partial fulfillment of the requirement for the award of the degree of Master of Business
Administration

Project Submitted By
(VAIBHAV VERMA)
Roll Number
2306660700262
Under the Guidance of
(DR. ASHUTOSH MISHRA)
HEAD OF DEPARTMENT

SRM BUSINESS SCHOOL, LUCKNOW (666)

(Approved By AICTE, Ministry of HRD, Govt. of India and Affiliated to Dr. A.P.J. Abdul KalamTechnical University,
Lucknow)

NH-24 SITAPUR ROAD, BAKSHI KA TALAB, LUCKNOW

(2023-25)

1|Page
 TABLE OF CONTENT

SI TOPICS Page
NO. No.
1 INTRODUCTION 6

1.1 BACKGROUND OF THE STUDY 7

1.2 NEEDS AND SIGNIFICANCE OF THE STUDY 8

1.3 STATEMENT OF THE PROBLEM 8

1.4 OBJECTIVES OF THE STUDY 9

1.5 SCOPE OF THE STUDY 9

1.6 LIMITATIONS OF THE STUDY 10

1.7 ORGANISATION OF THE REPORT 11

2 OBJECTIVES OF INNOVATIVE IDEA 14

3 SOURCES/RELEVANCEOFINNOVATIVEIDEA 16

4 FEASIBILITIES 18

5 SWOTANALYSIS 28

6 CONCLUSIONS 38

7 REFERENCES 39

2|Page
 ACKNOWLEDGEMENT

Through this acknowledgment I express my sincere gratitude towards all those people who helped me in
this project, which has been a learning experience.
This space wouldn’t be enough to extent my warm gratitude towards my project guide Dr. Ashutosh
Mishra for his efforts in coordinating with my work and guiding in right direction.

I escalate a heartfelt regard to our Institution principal Dr. Ashutosh Mishra for giving me the essential
hand in concluding this work.

I would be injustice to proceed without acknowledging those vital supports I received from my beloved
classmates and friends, without whom I would have been half done.

VAIBHAV VERMA

3|Page
 College Code : 666

CERTIFICATE FOR MINI PROJECTS

This is to certify that Mr/Ms. …………………………………………….

S/D/O ……………………………………………………………………………

is student of MBA 1st Year has Successfully Completed their Mini

Project on “……………………………………………………………...

……………………………………………………………………………………….

………………………………………………………………...……………………”

under the guidance of Dr./Mr………………………………………….

……………………………………………………………………………………… in partial

fulfilment of the requirement for the award of the degree of MBA.

Signature of Guide Signature of Head of Department

Place – Lucknow Date …………………….

4|Page
 DECLARATION

I undesigned, hereby declare that the project titled “Drone delivery- make a step ahead for future”
submitted in partial fulfilment for the award of Degree of Master of Business administration of SRM
BUSINESS SCHOOL is a bonafide record of work done by me under the guidance of Dr. Ashutosh
Mishra, Head of Department. This report has not previously formed the basis for the award of any degree,
diploma, or similar title of any University.

Signature

29/02/2024 Vaibhav Verma

5|Page
 CHAPTER1

INTRODUCTION

At present we all were in the Generation where each and every door delivery is given by a person. So, to
make a step ahead for Future towards the Technology, I would like to introduce my Project “Drone Delivery
– Make a Step ahead for Future”. In this project, I would like to make a drone which works flies according
to the Commands of Google’s Voice Navigation and deliver the product at customer prescribed address. In
this project, we will embedasoftwarewhichnavigatestheDronetoCustomer’saddresswithvoice commands
and a Display which is used to make an acknowledgement by the customer. Once the product is reached to
the customer the customer will get an OTP and a Call. On getting a Call the customer checks the door for
the Product. If the product is delivered Customer make an acknowledgement about the Product delivery by
providing the Correct OTP & clicking the OK button in the display of the Drone. If no one receives the
delivery with correct acknowledgement then Drone flies from there within the 10 Minutes of Landing. The
acknowledgement of Product is sent to the Server if the OTP entered is Correct then the product is handovers
to Customer else it will not be Handovers to Customer. If any unauthorized tries to grab the product from
the Drone, then the Drone gives them a mild shock to release from an unauthorized person and flies from
there to nearby Office and deliver the next Product in the sequence.

Scope of Innovation

Drones are being used by the world’s military forces for more than a decade now. Today, with the
advancement of smart phone technology, it has become easier to produce and control drones. Drones
can use most of the capabilities of a smartphone application, processor and associated sensors.

6|P ag e
Smartphone also have the necessary wireless and compute capabilities to connect drones. The
Android/IOS operating system provides the framework, drivers and tool kits to develop sophisticated
features in a drone. They can be used for many commercial applications and could become a critical part of
it in the near future. The business opportunities and physical risks of drones will attract taxation and
regulation in the near future. Manufacturers must develop secure, reliable tools and features.

The standardization of controls and capabilities of drone driven IoT will occur due to industry diffusion,
regulation and economics. This is a huge opportunity for drone manufacturers who will naturally start to
use similar apps, tools and interfaces. The market for commercial/ civilian drones is expected to grow at a
compound annual growth rate (CAGR) of 19% between 2015 and 2020. The following industries could
benefit tremendously from this commercialization of drones:

Agriculture

Aerial or orthographic surveillance of land to identify and control potential crop threats, such as pests or
fungus infestations, will be possible. Soil irregularities, such as water saturation and erosion could be easily
found. Moreover, aerial drones could scan fruit for sugar and temperature variables to find potential
problems and also identify areas for picking crops at optimal times.

Mining
Drone driven IoT can be used to survey and audit various aspects of mining operations, including berm
erosion, road analysis, subsidence, directing automated ground vehicles and security.

Construction

Drone driven IoT can be used to survey build sites, monitor operations and progress, provide 3D mapping,
inspect construction materials and check security.

7|P ag e
 Utilities

Power lines, turbines, towers and dams can be inspected by drone driven IoT. Property surveys,
equipment monitoring and security functions can also be performed by drone driven IoT.

DeliveryServices

Drone deliveries could begin as soon as regulations are set and services are available to expand
operations.

Film and Television

Drones are already being used to mount cameras and take aerial shots which were previously possible
only by the use of helicopters. Drones have provided a less noisy and vibration free medium in this sector.

Emergency Services

Drone driven IoT can be used for traffic surveillance and accident assessment. They can also be used to
carry equipment, water, relief packages and provide other logistical support functions.

Problem Statement

The problem statement of drone delivery is related to the battery technology. So far, batteries aren’t energy
dense enough to provide long range, and weight carrying power. So, the drone distribution centre could
only serve a respectively small area, and not handle very large packages.

8|P ag e
 Significance And Need of the Study

The significant benefits of drone delivery services include:

 Faster air deliveries using shorter and direct routes, saves time for companies.

 Low operational charges, when compared to vehicle delivery services, reduce costs.

 Technological advancements like VTOL (Vertical Take-off and Landing), geospatial mapping, IoT, and
machine learning result in higher accuracy in package delivery.

 It is easier to reach remote areas and harsh terrains like jungles, hills, or mountains.

 Provide the convenience of contactless delivery with limited human intervention.

 Reduces carbon footprint due to a decrease in energy consumption.

Objectives of the study

 It is fast and reliable

 It has the features of in hand delivery

 It will avoid thefts and Hassel faced by Customer

 Customer will not have to wait in a fixed location to collect the parcel

 It is robust and spontaneous

 Very efficient over short distances

 Can be controlled with gestures if modified.

 Self-updating of user location.

9|P ag e
 Limitations of the study
1. Limited package weight– The drones currently used for delivery purposes are not capable of carrying
heavy loads.

2. Flight times – Drones run on batteries and their flight time is hugely dependent on these batteries. It is
worth noting, that the flight time reduces with increasing loads.

3. Collision issues–Drones these days are equipped with excellent sensors, but might be an issue
considering future prospects as drone delivery will increase in coming days.

4. Droplocations–These drones as usually autonomous and are dependent on GPS for navigation. These
might face issues in densely populated areas.

5. PrivacyBreach–Delivery drones have cameras and they constantly record footage and not everyone
around will be comfortable with it.

CHAPTER 2
LITERATUREREVIEW

A delivery drone is an unmanned aerial vehicle (UAV) used to transport packages, medical supplies, food,
or other goods. Delivery drones are typically autonomous. In November 2020 the FAA proposed
airworthiness criteria for type certification of delivery drones with an intent to initialize commercial
operations. Zipline, Wing copter, and Amazon Prime Air were amongst the 10 companies selected for this
type certification.

The concept of drone delivery entered the mainstream with Amazon Prime Air – Amazon.com founder Jeff
Bezos December 2013 announcement that Amazon was planning rapid delivery of lightweight commercial
products using UAVs. Amazon's press release was met with scepticism, with perceived hurdles including
federal and state regulatory approval, public safety, reliability, individual privacy,

10 | P a g e
operator training and certification, security (hacking), payload thievery, and logistical challenges.

In December 2013, in a research project of Deutsche Post AG subsidiary DHL, a sub-kilogram quantity of
medicine was delivered via a prototype Microdrones "Parcelcopter", raising speculation that disaster relief
may be the first industry the company will use the technology. In July 2014 it was revealed Amazon was
working on its 8th and 9th drone prototypes where each could fly 50mph (80km/h) and carry a 5lb (2.3kg)
package, and had applied to the FAA to test them. In August 2014, Google revealed it had been testing
UAVs in Australia for two years. The Google X program known as "Project Wing" announced an aim to
produce drones that can deliver products sold via e-commerce.

In July 2014 it was revealed Amazon was working on its 8th and 9th drone prototypes where each could
fly 50 mph (80km/h) and carry a 5lb (2.3kg) package, and had applied to the FAA to test them. In August
2014,Google revealed it had been testing UAV sin Australia for two years. The Google X program known
as "Project Wing" announced an aim to produce drones that can deliver products sold via e-commerce.

11 | P a g e
Moreover, facing consumers worried about staying at home (due to COVID- 19 related lockdowns) and the
danger of exposing delivery people to the pandemics of COVID-19, which has profoundly affected alldirect
human contact, delivery companies have started to develop creative ideas such as the use of delivery robots
in many cities around the world.

Hence, the demand for contactless delivery modes has increased significantly during this health crisis.
Consequently, the deployment of shared drone services will be pushed/accelerated in the near future,
particularly for the delivery of certain special goods and medicines, such as biological tests to be delivered
hospitals and/or laboratories. Additionally, the merchandise transportation sector is one of the major
emitters of greenhouse gases, with numerous environmental consequences, including air and water
pollution and contributions to global warming.

Facing this concern, the use of drone sharing systems in last-mile deliveries may contribute to reducing
emissions and lowering the use of fossil fuel energy sources. Indeed, drone-based delivery systems, which
are supposed to have a much lower carbon footprint, have the potential to replace a substantial proportion
of the current systems employing cars/motorcycles for short distances. In addition, drone-based delivery
could reduce traffic jams and the number of accidents, especially in places where the road network is
currently overused. The shared autonomous drone delivery concept framework is envisaged as follow: Once
a user has purchased goods from an e-commerce platform or a meal from a fast-food restaurant, the delivery
service assigns a drone to pick up the ordered package and deliver it. These plans notwithstanding, the
logistics related to delivering with drones is still uncharted territory and decidedly not yet common
knowledge. As a matter of fact, the deployment of drone-based deliveries introduces new restrictions that
make the logistics concepts and methodologies commonly/traditionally applied for transportation in last-
mile deliveries unprepared to deal with the drone delivery use-case.

12 | P a g e
 FUTURESCOPE

As we live in the ‘new normal’, the technology around us is fast transforming the world beyond our
anticipation. While technological developments have been evolving for years now, COVID19 further
accelerated the process. The pandemic pushed people and businesses to adopt new ways to do things and
reoriented their behaviours. The outbreak increased the usage of contactless technologies, which are
revolutionizing every aspect of our life, from payments and food delivery to health care.

Drones or unmanned aerial vehicles (UAV) are robots that can fly autonomously under their embedded
systems which uses remote sensing, software development, GPS etc. Such amalgamation promises a great
future for extensive use of drones in providing services especially in areas that are remote or cannot have
humans serving physically.

Increased work efficiency and productivity, decreased production costs, improved accuracy, refinedservice,
better customer relations and security area few major advantages that drones offer industries globally.

According to the Drone Industry Insights Report 2020, the world wide drone industry is predicted to
increase at a 13.8 percent CAGR to $42.8 billion by 2025. With Ministry of Civil Aviation updating the
Drone Rules 2021, efforts are to make India a global drone hub by 2030. By 2025, India is anticipated to
be the world’s third-largest drone market, according to the results. The unmanned aerial vehicle market in
India is expected to grow at a CAGR of 20.9% between 2020 and 2026 which further gives us an estimate
on the investments from industrial conglomerates, chip companies, IT consulting firms, etc.

Five sectors where drones can make a difference:

 Agriculture
 Healthcare
 Inventory Management
 Security and Surveillance
 Disaster Management

13 | P a g e
 CHAPTER3
THE ORETICAL FRAMEWORK

The internet evolution continues. Whether it is online shopping, ordering food, buying gifts, grocery runs,
shipping official or personal packages the consumer space is increasingly relying on fast and reliable door
step delivery. The market for delivering goods is massive. Shipping, Logistics, Online shopping businesses
are investing heavily in the entire supply chain upto the last mile delivery to make it fast and efficient. On
the other hand, there are significant technological advances in building drones in the delivery area.
Drones could allow accelerated delivery times, improved accuracy and reduce human cost associated with
delivery. Which leads us to believe --

“Drones will handle last mile delivery of most light weight packages.”

Feasibility
Financial Feasibility - The sponsor company currently leases their vehicle fleet. The baseline model
assumes the vehicle fleet is upheld; the savings in the model came from fewer miles and less manpower.
The three existing transportation costs include fuel, maintenance, and driver cost. Fuel cost was variable by
location and was volatile for future predictions; however, the implementation strategy for the analysis
performed was relatively insensitive to fuel. Given a variety of selected sponsor company locations
primarily in California and Texas, a fuel price of $3.50/gallon ($0.92/litre) was selected. Maintenance cost
for drones was liable for fixed and variable costs per mile. Some research exists on this subject, but the
analysis for this project arrived on a cost of $0.10 per mile. Driver cost was considered at $20/hour. There
are potentially unexplored cost savings on drone deliveries cutting back on overtime that remain
unexplored. Investment costs include drone cost, container cost, and infrastructure cost. Drone cost is highly
volatile and not easy to estimate.

14 | P a g e
Given current technology, $10,000 was a comfortable estimate for a delivery drone. The current containers
used by the sponsor company would not be sufficient for drones, so an investment in containers was also
a necessary expense to consider. Given assumptions about current 21 usage of cargo containers, an
estimated 3:1 container to delivery drone ratio was used to determine the number of containers. Container
cost for a secure and safe container was estimated at $100 per unit. Infrastructure costs would be minimal
for the proposed solution of sponsor facility to customer to sponsor
facility.AmorereasonablesolutionliketheMatternetandMercedesmodelof flight from business to van to
business would require significantly higher infrastructure costs for vans capable of receiving delivery
drones. A simple
$10,000 per facility for drone operations was considered. The cost would cover partitioning an area suitable
for drone take-off and landing. IT upgrades and other implementation costs were considered separately at
$40,000 each. This would cover required software, hardware, and administrative resources. Again, the costs
are estimated; Flirtey, Flytrex, Top Flight Technologies, and Matter net were not responsive to academic
inquires on costing. Fuel, driver costs, and vehicle maintenance costs are three costs where drone delivery
can create savings. Battery-powered drones were considered exclusively in the analysis, so fuel cost
represented a direct savings for every mile covered by drones. Appendix E provides further insight on how
the miles saved were calculated. Driver’s wages were calculated by a function of an hourly wage, how
many miles were saved by drone usage, and an average speed including stops of 25 miles per hour (~40
kilometres per hour). Maintenance was liable for fixed and variable costs per mile. Vans and trucks had
different costs, but they were collectively combined into one metric of $0.20 per mile. All of the Costs
above were used collectively to calculate the net present value (NPV) based on the results from the
operational analysis (further detail on the calculations in Appendix E).

15 | P a g e
 Operating/Production Feasibility

Operational feasibility was defined by 2018 data from the sponsor company. Approximately 30- 50% of
the data had all of the relevant fields for analysis. Although there were potential limitations to the data,
sufficient information to perform the analysis was available. No scaling or data manipulation was done to
speculate missing entries. Cases where critical data was absent in a record, namely missing locations or
fields required to link deliveries to specific routes, were excluded from the analysis. Data for airports was
taken from the Federal Aviation Administration and manipulated in Tableau and Excel.

Description
A delivery drone is a type of unmanned aerial vehicle (UAV) used for distributing packages to consumers
during the last mile delivery process. These types of drones generally have 4-8 propellers, rechargeable
batteries and the ability to carry lightweight containers. They can be operated either autonomously using
AI technology or remotely, with distribution centers and operators overseeing theflight. With drone
technology already advancing, the capability of avoiding collisions with other drones in flight, navigating
through urban landscapes and employing smart landing techniques already exists. Benefits of drone delivery
is currently being tested but could include lower costs, higher operational efficiency, new revenue streams,
instantaneous fulfillment, less congested roadways, fewer accidents and lower emissions.

Since delivery drones are not yet an established solution, a few of the limitations being researched are
package weight limitations, flight time and range constraints due to battery life, collision avoidance systems
and how to handle unpredictable events such as weather or being hacked. As e-commerce continues to grow
and traditional forms of delivery are no longer the most efficient option, delivery companies are
experimenting with the implementation of drones. Businesses such as USPS, Amazon and

16 | P a g e
Google have undertaken drone experiments as a feasible alternative for growth. The current most popular
use cases for delivery drones are time-sensitive materials such as medicine and food or small items for
same-day delivery.

Rules and regulations

While the government previously banned the testing and implementation of delivery drones in the United
States, there have since been updated regulations about the concept. In 2016, the Federal Aviation
Administration (FAA) included guidelines for commercial drone use. The rules included a maximum
weight of 55 lbs, a maximum height of 400 feet and a maximum speed of 100 mph. It also mandated that
delivery drones can only be operated during the daytime by operators with a flying certificate and an age
of at least sixteen. In 2017,the United States Senate moved to work with local officials to test drone delivery
initiatives. While this technology has not yet been brought to the main stream market, it is being widely
tested for various sectors and use cases.

17 | P a g e
 Unique Selling Proposition

Using Blockchain to Secure Drone Deliveries As the IoT device is already configured to work directly with
the blockchain, it simply needs sensor input from an outside source. In this case, the drone will supply all
information to the IoT device, including flight telemetry, trip, geo-spatial and other TOF (Time of Flight)
data.

Luckily, DJI creates a line-up of commercial drones that are already able to communicate with the IoT
device directly through standard serial communication. DJI also has a powerful On Board SDK, which will
essentially give us full access to all of the drone’s capabilities, sensors, and internal flight controller.
Combined with a compatible IoT device, DJI drones are ready to be configured to be fully block chain-
enabled delivery drones out of the box!

Autonomous flight
To become expert pilots, people need to have an in-depth knowledge of complex aerial digital imagery,
normalized differential vegetation index software or have to rely on third part crop constants. However
Autonomous flight function solves most of these issues.

Geographic information systems

Drones normally carry video cameras and G.P.S system. it is suitable to use geographical information
18 | P a g e
19 | P a g e
system, which is designed to capture, store, manipulate, analyse, manage, and present all types of spatial
or geographical data.

Other Information about the product

A delivery drone is an unmanned aerial vehicle (UAV) used to transport packages, medical supplies, food,
or other goods. Drones may be remotely pilot edorautonomous. In November, 2020 the FAA proposed air
worthiness criteria for type certification of delivery drones with an intent to initialize commercial
operations. Zipline, Wing copter, and Amazon Prime Air are amongst the 10 companies selected for this
type certification.

Delivery drones or unmanned aerial vehicle are pilotless aircraft carrying packages to a designated area.
These flying bots generally have 4 to 8 propellers and rechargeable Li-Po batteries to generate thrust. The
delivery drones are autonomous or remotely controlled through a ground-controlled station. Drone
operators can monitor multiple flying bots at once keeping track of every package delivered. Traditionally,
road transport has been the backbone of the logistics industry. But as urban settlements are getting more
congested, it is already hard to reach remote areas with no road infrastructure, the drawbacksof traditional
methods are becoming more apparent. The delivery industry is beginning to use drones to solve these issues.

In-air and on route

Just like any aircraft, delivery drones have to anticipate with the laws of physics and aerodynamics. The
design of delivery drones appears in all shapes and sizes. In a four-rotor drone, two blades spin clock-wise
and other two counter clock-wise. Thus, the thrust generated by the rotation of the blades, along with
stabilization technology, maintains the drone’s position in the air. However, for delivery purposes, the extra
load carried by the drone needs to be considered. The bigger package requires a more robust and efficient
performance drone to carry out the delivery operation. For delivery drones to fly independently, beyond
visible line-of-sight technology is needed. Guided by GPS systems, drones will be able to deliver packages
to the customer’s location. But may encounter potential obstacles. Whether a bird, tree or even another
drone, automatic sense and avoid systems is required to prevent in-air and ground accidents. Unmanned
traffic management system (UTM) would control the skies shortly. Built-in sensors and cameras will be
able to identify a nearby object’s proximity and speed, enabling the drone to take a responsive action to
avoid the obstacle.

20 | P a g e
 Applications -

 Health care delivery–

In December2013, the DHL parcel service subsidiary of Deutsche Post AG tested a "microdrones md4-
1000" for delivery of medicine. Drones can be used to transport medicinal products such as blood products,
vaccines, and other supplies such as pharmaceuticals and medical samples. Medical deliveries have become
one of the leading applications for drone delivery because they can more easily fly into and out of remote
or otherwise inaccessible regions, maybe compared to trucks or motorcycles. Medical drone delivery is
credited with saving lives during emergency deliveries of blood in Rwanda and post-hurricane relief in
Puerto Rico.

21 | P a g e
 During the COVID-19 pandemic, drones began making medical deliveries of personal protective equipment
and COVID-19 tests in the United States.
Commercial operations of medical drone delivery have been underway since 2016, when Zipline became
the first sustained commercial drone operation. Zipline has made more than 70,000 medical deliveries by
drone as of October 2020.

 Food delivery–

In 2017 drone delivery start-up Flytrex deployed a commercial drone delivery route in Iceland's capital,
Reykjavik Drones have been proposed as a solution for rapidly delivering prepared foods, such as pizzas,
tacos, and frozen beverages.

Early prototypes of food delivery drones include the Taco copter demonstration by Star Simpson, which
was a taco delivery concept utilizing a smartphone app to order drone delivered tacos in San Francisco area.
The revelation that it didn't exist as a delivery system or applied to it being labelled a hoax. A similar
concept named the "burrito bomber" was tested in 2012.

Food delivery via flying drones could soon become a reality in India. The Director General of Civil Aviation
(DGCA) has given a nod to food start-ups like Zomato, Swigged and Dunzo to start testing beyond the
visual line of sight (BVLOS) drones for deliveries.

22 | P a g e
 Postal delivery–

Different postal companies from Australia, Switzerland, Germany, Singapore, United Kingdom and
Ukraine have undertaken various drone trials as they test the feasibility and profitability of unmanned
delivery drone services. The USPS has been testing delivery systems with Horsefly Drones.

 Ship resupply–

The shipping line Maersk and the Port of Rotterdam have experimented with using drones to resupply
offshore ships instead of sending smaller boats.

23 | P a g e
 Motivation to adopt Drones:

Main factors that could motivate online retailers to adopt drones are:

● Cost

● Value of fast delivery

● Convenience

There are three possible models in which drones can be used for delivery:

Global courier and delivery service companies using drones for last mile delivery:

Logistics companies have been experimenting with drones for delivery. The US courier and parcel delivery
services industry consists of about 7,500 companies both large and small, which have combined annual
revenue of about $90billion.The industry has seen steady growth in the last few years. A major chunk of
the industry is held by its two key players, FedEx (FDX) and United Parcel Services (UPS). The industry
is both capital-intensive and labour-intensive. Labour expenses include the wages and salaries paid to
drivers, pilots, operators of call centers and drop-off locations, ground and administrative staff, and loading
crews.

Drone delivery by drones operated and managed by online retailers:

According to Business Insider (Smith2015): “Drone deliveries will translates to instant cost savings, part
of which will be passed on to consumers. It costs far less to operate a fleet of unmanned aerial vehicles

24 | P a g e
than it does a fleet of ground vehicles. It costs 10 cents to deliver a 4.4-pound (2 kilo) package over six
miles (9.7 kilometers) using a drone, according to Raffaello D'Andrea,who co-founded Kiva Systems (the
ware house robots used by Amazon).That's far cheaper than the $2 to $8 per package that it costs Amazon
today using ground transportation for deliveries over this "last mile." Offering 30-minute delivery at such
a low cost to consumers could boost Amazon's e-commerce and retail market share. That's because "high-
than-expected shipping costs" are the top reason why consumers abandon a shopping cart online, so the
retailer achieving the most significant reductions in shipping fees will likely win consumer loyalty and
market share. Competing retailers and shippers other than Amazon are also working on delivery drones, but
Amazon seems to be the furthest along in its testing.” In July 2014 it was revealed Amazon was working
on its 8th and 9th drone prototypes, some that could fly 50 miles per hour and carry 5-pound packages, and
had applied to the FAA to test them. It is projected that Amazon will have savings of
$500M per year.

Companies providing drone operations and management:

There could be companies that offer service drones for flight and also management console and software.
Matter net is a company that is exploring subscription-based leasing of drones.

25 | P a g e
 Which Companies Are Preparing for Drone Delivery Services?

Plenty of companies see a future in drone delivery from both an efficiency and cost-savings perspective.
However, due to strict Federal Aviation Administration regulations, most drone delivery testing can only
happen in rural areas, away from large population centers and airports.

Despite existing blockers, the following major companies have begun investing resources in planning for
a future full of drone deliveries:

 Amazon
 Google(Alphabet)
 Walmart
 UPS

26 | P a g e
CHAPTER4

RESEARCH METHEDOLOGY

The word research is composed of two syllables “Re & Search.”It is a structured enquiry that utilizes
acceptable scientific technology to the problems create new knowledge that is generally applicable.

According to Clifford Woody, “research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions; and at last, carefully testing the conclusions to determine whether they fit the
formulating hypothesis.”

RESEARCHDESIGN:

The research design is Exploratory Research design of my project. Exploratory research is defined as
research used to investigate a problem which is not clearly defined. It is conducted to have a better
understanding of the existing problem, but will not provide conclusive results. For such research, a
researcher starts with a general idea and uses this research as a medium to identify issues, that can be the
focus for future research.

An important aspect here is that the researcher should be willing to change his/her direction subject to the
revelation of new data or insight. Such research is usually carried out when the problem is at a preliminary
stage. It is often referred to as grounded theory approach or interpretive research as it used to answer
questions like what, why and how.

Exploratory research is effective in laying the groundwork that will lead to future studies. Its studies can
potentially save time and other resources by determining at the earlier stages the types of research that are
worth pursuing.

DATACOLLECTION:

Data comprises of two types:

 Primary data
 Secondary data

27 | P a g e
PRIMARYSOURCES:
The primary data was collected through questionnaires. They were filled using the scheduled method of
data collection by the researcher (GOOGLE FORMS). Primary data is a data which have been collected
originally for the first time. In other words, primary data may be outcome of an original statistical inquiry,
measurement of facts or a count that is undertaken for the first time. For instance, data of population census
is primary.

Primary data being fresh from the fields of investigation is very often referred to as raw data. In the
collection of primary data, a good deal of time, money and energy are required.

Questionnaire:

A questionnaire is a research instrument that consists of a set of questions or other types of prompts that
aims to collect information from a respondent. A research questionnaire is typically a mix of close-ended
questions and open- ended questions. Open-ended, long-form questions offer the respondent the ability to
elaborate on their thoughts.

The data collected from a data collection questionnaire can be both qualitative as well as quantitative in
nature. A questionnaire may or may not be delivered in the form of a survey, but a survey always consists
of a questionnaire.

SECONDARY SOURCES:

The secondary sources were used only for collecting information regarding the sample, they were however
not used for analysis. Secondary data is data that has already been collected and examined earlier by other
investigators.
Secondary data can either be published or unpublished data.

SOURCES OF DATA COLLECTION:

Primary sources: Collection by questionnaires Secondary Sources: Collected through:

 Journals, Articles, etc.
 Social media websites, blogs, and customer reviews, etc.
 Research paper

Sampling
 Population area: Lucknow

28 | P a g e
  Sampling unit: Few respondents of Lucknow

 Samplesize:29(responses)

SWOT ANALYSIS OF THE DRONE DELIVERY

29 | P a g e
 • Wide geographic presence
• High margins compare to
Gold & Silver industry's
competitors
• Success of new product mix
• Diverse Revenue models
• Market Leadership Position
STRENGTHS
• Strong brand recognition

• High turnover of employees

• Gross Margins and Operating
Margins Extra cost of building
new supply chain and logistics
network
• Declining market share of
Drone Delivery with
increasing revenues
WEAKNESSES • Low investments into Drone
Delivery's customer oriented
services

30 | P a g e
 • Lower inflation rate
• Increasing customer base in
lower segments
• Rapid Expansion of Economy
• Increasing government
regulations to increase the
OPPORTUNITIES customer base.
• Trend of customers migrating to
higher end products
• Customer preferences are fast
changing

• Saturation in urban market and

stagnation in the rural markets
• Changing political environment
• Competitors catching up with the
product development
• Commoditization of the
THREAT Product segment
• Trade Relation between US and China
can affect Drone Delivery growthplans
• Competitive pressures

31 | P a g e
 CHAPTER 5

DATA ANALYSIS

32 | P a g e
33 | P a g e
34 | P a g e
35 | P a g e
 CHAPTER6

FINDINGS

 According to my survey I got to know that 48.3% were female and 51.7% were male.
 The largest responses for the age 25 were responded.
 When I asked for the income 50 % for 20000 - 30000, 38.9% for above 500000 and 11.1% for 41000-
50000.
 The highest responses for the question i.e. awareness of drone delivery were 86.2% for yes, 10.3% for no
and 3.4% for maybe.
 The sources that the responses get to know are 58.6% for advertisement, 20.7 % for friends, 17.2 % for all
of the above and 3.4% for family.
 When I got to know about the responses reaction would be towards first parcel delivery by drones 82.8%
were very positive, 10.3% were for somewhat positive and 6.9% were neutral.
 I raise a negative question to check the perception of the customers that the feeling for the package delivery
anywhere on the front lawn are 34.5% were neutral, 24.1% were very positive, 20.7% were somewhat
negative and 3.4% were for not applicable.
 When I asked for pin point the preferred delivery location by drone to check the interest were 72.4% were
for the much more likely, 17.2% for more likely, 6.9% for neutral and 3.4% for less likely.
 The largest percentage of online shoppers (39%) say drone delivery won’t impact their purchasing
decisions, but 25% say they would be less likely to order a package if they knew a drone was going to
deliver it.
 When I asked about the interest in drone deliveries be affected if the deliveries were made to their own

36 | P a g e
 secure, automated boxare75.9%for very positive, 17.2% for neutral and 6.9% somewhat positive .
 The highest responses for the preferences for drone delivery service are 86.5% for yes, somewhat 10.3%
for maybe and the lowest is 3.4% for no .
 When I asked for the excitement of the drone delivery service 86.2% were for yes , 6.9% for no and 6.9%
for maybe.
 At the last I asked for their suggestion towards drone delivery.

CHAPTER 7
RECOMMENDATIONS, PROPOSED MODELS

 The concept of drone delivery entered the mainstream with Amazon Prime Air – Amazon.com founder Jeff
Bezos' December 2013 announcement that Amazon was planning rapid delivery of lightweight commercial
products using UAVs.
 The government will draft policies to ensure that no hindrance comes in the path of the emerging new drone
market in the country.
 Till recently, there was a conception that drones were meant for armed forces and fighting enemies.
However, the Kisan Drone Suvidha has added a new chapter in the direction of modern agricultural facilities
of the 21st century.
 This project drone delivery is proposed for the development of the economy.
 The proposed model of my project is given below:

37 | P a g e
38 | P a g e
39 | P a g e
 CHAPTER 8

CONCLUSIONS

Drones are set to become the future of logistics with their reduced cost, higher convenience and delivery
times of less than 30 minutes. Both online retailers and brick and mortar stores will adopt it to smoothen
their last mile delivery process. Stores like Walmart can experience increased efficiency and convenience
with their local presence while online retailers like Amazon can offer quick deliveries at reduced costs. The
early adopters will be the winners as they will be able to provide their services at cheaper and quicker rates
leading to brand promotion.

The comprehensive survey presented in this paper focuses on reviewing/commenting on a broad selection
of the most relevant and most recent papers on drone-based parcel delivery systems. This review paper
highlighted a series of core research questions of relevance for this new logistics industry. Most studies
addressed vehicle routing problems at the strategic level, with delivery performed by vans in collaboration
with drones. Other studies are beginning to show an interest in the deployment of recharging stations to
increase the coverage area of drones. This could result in various research issues, such as battery swapping
optimization, optimal location of recharging stations, drone landing schedule on recharging stations, and
recognition of recharging stations by drone during landing. As an overall impression from this review of
there cent literature, unmanned aerial vehicles could be the most suitable delivery mode for last-mile
deliveries in urban areas. In contrast, some interesting problems remain to be investigated. For example. On
the other hand, the performance of most of the mathematical formulations and optimization techniques of
the proposed models for drone delivery problems was demonstrated and applied using only randomly
generated data. Consequently, collecting real data from drone manufacturers and from logistics delivery
businesses, and specifically from drone deliveries, is an unavoidable step to demonstrate and test the
efficiency of drone delivery concepts and models, which can reliably support a strategic decision making.

Deliver by drone – make it happen!

40 | P a g e
 REFERENCES

 Bibliography:

 Research Methodology: C.K. Kothari

 Marketing Marketing:Philip Kotler

41 | P a g e
 Webliography:

 https://www.researchgate.net/publication/344513432_Smart_Drone_Delivery_System
 https://en.wikipedia.org/wiki/Delivery_drone
 https://www.wipro.com/business-process/the-future-of-delivery-with-drones-contactless-accurate-and-high-
speed/
 https://nevonprojects.com/medical-supplies-delivery-drone/
 http://dronesonvideo.com/drone-delivery-around-world/
 https://timesofindia.indiatimes.com/gadgets-news/swiggy-may-soon-fly-food-to-your-
balcony/articleshow/83578588.cms
 https://studymoose.com/drone-delivery-system-project-report-essay
 https://mobisoftinfotech.com/resources/blog/drone-delivery-services-the-future-of-logictics/amp/
https://freecourses.net/marketing/drone-delivery/

42 | P a g e
43 | P a g e