Transport and logistics

Drones are expected to become an integral part of the transport industry in Australia as a result of rapid technological advancements. Their speed, accessibility and relatively low operating costs, when compared with other forms of transport, are key driving factors.

Drones can help overcome congestion in major cities and distance in regional and remote areas, to deliver parcels, food and medical supplies. Australia’s adoption of new technologies and the geographical spread of Australian cities could be a catalyst for rapid uptake of this technology.

Parcel delivery operations typically use automated drone technology to complete the ‘last leg’ of a delivery from a distribution centre or retail shop direct to a pre-specified location. For existing operating models, this can utilise smart phone and global positioning satellite (GPS) technologies to direct the drone to the drop-off location.

Electric vans are currently the most cost-efficient delivery method for ‘last leg’ parcel journeys from distribution centres to destination locations. Drones have been found to be cost competitive for express deliveries within 30 minutes from the order, with lower upfront costs relative to electric vans and comparative lower costs for both labour and maintenance of vehicles (Valdani Vicari and Associati, 2020). The report also found a cost saving per drone delivery of around $5.60 with the potential for drone deliveries equipped with GPS and navigational technologies to take as little as 7 minutes until delivery, compared with an estimated average of 352 minutes per delivery for conventional electric van delivery.

Food delivery operations typically use automated drone technology to deliver from a food outlet or restaurant directly to the consumer. This service is likely to utilise similar technology to express parcel deliveries and will compete primarily with traditional food delivery companies.

Electric bikes are currently the most cost-efficient delivery method for food deliveries from restaurants to customers, ahead of car deliveries. Alternatively, drones require less labour input to deliver the same number of food deliveries. Drones equipped with GPS and navigational technologies have been found to be cost competitive over all distances serviceable by electric bikes, with one drone operator potentially replacing 13 couriers on electric bikes for the same quantity of deliveries. The report also identified a cost saving per drone delivery of around $1.70, with deliveries taking as little as 6 minutes compared to an estimated 13 minutes for electric bikes (Valdani Vicari and Associati, 2020).

There are currently two drone delivery services operating in Australia – Wing Aviation and Swoop Aero –  which have been given approval to fly by the Civil Aviation Safety Authority. Wing is operating in Gungahlin and Belconnen in the Australian Capital Territory, and in Logan in Queensland. Swoop Aero is operating in Goondiwindi in Queensland.

Pathology deliveries use automated drone technology to facilitate direct delivery of pathology samples from local medical or pathology centres to hospitals and testing laboratories.

Electric vans currently offer the most cost-efficient mode of delivery for pathology tests from pathology clinics to hospitals and testing centres. As with parcel deliveries, electric van deliveries are subject to large upfront capital costs relative to drones and comparatively higher operating costs.

It is estimated that for every two couriers, only one drone operator is needed, providing potential for significant labour cost savings (Valdani Vicari and Associati, 2020). Pathology drone deliveries were also found to provide a cost saving of $4.50 per delivery, with delivery times as low as 15 minutes per delivery, compared with 42 minutes per delivery for an electric van.

The uptake of drone technology in Australia has the potential to drastically improve access to health services, including pathology, particularly in regional and remote Australia.