Drone deliveries at risk

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Global commercial real estate company Colliers International has released a report that says calls for stricter regulations and high property prices could put the future of drone deliveries at risk.

The report, “European Retail & Logistics Insights – From Sheds to Shelves”, suggested that costs for last mile deliveries will be driven by land constraints around cities such as London, where other uses such as housing often receive greater political support.

And tighter regulation by the European Union could create a real barrier to the use of drones.

“Realistically with rising rents and increasing complication of airspace regulation drones may become more trouble than they’re worth,” said Tim Davies, head of EMEA industrial and logistics at Colliers International.

Amazon was set to carry out deliveries via commercial drones in selected areas this year – but this has not taken place.

Paul Souber, head of central London Retail Agency said: “The report suggests that retailers may instead be looking to better use existing modes, such as London’s increasing network of Uber taxies or in-store collection.”

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