Beware drone delivery privacy issues, GlobalData

Beware drone delivery privacy issues, GlobalData

Drone delivery may cut costs, but consumers will pay the price in privacy, according to GlobalData.

RTIH recently reported that Wing, the drone delivery subsidiary of Google's parent company Alphabet, had launched the world’s first commercial air delivery service of selected goods such as coffee, ice cream and medication to eligible suburbs in Australia’s capital city of Canberra.

Direct-to-consumer drone delivery is already on the verge of being implemented by Amazon and JD.com while Domino’s Pizza has already rolled out test flights of pizza delivery. “The seemingly futuristic delivery concept offers a number of benefits for both retailers and shoppers. Bypassing ground transportation allows for greater route flexibility which can facilitate faster delivery for time-sensitive orders, or more efficient delivery to rural or inaccessible areas. Similarly, delivery addresses can become less rigid, allowing for literal ‘anywhere, anytime’ shopping,” says Katrina Diamonon, Consumer Analyst at GlobalData. 

Yet consumers are currently divided on the issue, she adds. According to GlobalData’s 2018 Q4 global consumer survey, 47% of global consumers consider it appealing to have online orders delivered by automated devices such as drones or driverless cars. Significantly, one-third finds the concept to be explicitly unappealing.

“As retailers find more ways to make shopping more efficient, enjoyable and affordable, consumers must increasingly consider the price they pay in privacy,” Diamonon concludes.

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