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So we have FedEx, Walgreens, and Wing (a.k.a. Alphabet, a.k.a. Google) all collaborating on this. Any of these huge companies could have run a pilot project by themselves and had a head start over the competition. I wonder why they joined up?

My theory #1 is that it's risk mitigation against inevitable public backlash. If and when something happens (drone crashes, a package falls, whatever) the media will be talking about the horrible thing that Google did, or whoever is the frontrunner in drone delivery. Just look at how critics gang up on Tesla when it comes to driverless cars. By combining forces, the media and critics cannot single out Google because it's FedEx and Walgreens and Google; it's everybody doing it.

My more mundane theory #2 is that Wing got the federal certification first, so FedEx and Walgreens paid Wing to be involved for fear of missing out.

Theory #3: It helps with lobbying the more partners you have. Lobbying at state or federal level I think will be super essential otherwise every city will be creating their own set of regulations and some may try to ban drone delivery.



I think the answer is simpler: they could not have run a pilot project by themselves.

Logistics are complex businesses. Google does not have warehouses in enough places to cover an interesting area. FedEx has. And drone deliveries are going to be expensive and only for lightweight items first. That means medicine makes sense. Walgreens will bring the clients.

And no, making reliable transport drones and the infrastructure to load them up, get a reliable GPS coordinate from your client, identifying drop-in zones is not easily done, and that's the value Google brings.


Designing + building drones and airspace software aren’t in FexEx and Walgreens core business competencies.

Wing has been working on this for many years, which makes them a good partner.


The more normal reason is that each cares about different parts.

Walgreens has something they need to deliver, and wants to be seen as innovative, but doesn't really want to do tech.

FedEx wants to improve delivery options, cares about end users and doesn't really care about tech.

Alphabet cares about technology, but doesn't really want to deal with end users.


Commercial joint ventures are common and often occur for prosaic reasons like "we think we'll make more money this way".




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