Amazon to expand drone deliveries to 500 U.S. cities

Amazon has announced plans to expand its Prime Air drone delivery service to nearly 500 U.S. cities and towns by the end of 2026. The expansion aims to target suburban and low-density areas, including metropolitan regions such as Chicago, Atlanta, Cleveland, and Boise. The drones are designed to carry lightweight packages weighing up to 5 pounds (2.3 kilograms) with potential delivery times as short as 30 minutes.

This move intensifies the competition between Amazon and Walmart as both companies seek to master last-mile delivery in less densely populated regions. While Amazon focuses on expanding its aerial fulfillment capabilities, Walmart is utilizing its extensive store network as inventory hubs and has partnered with Alphabet’s Wing to develop drone infrastructure.

Despite the expansion, challenges remain for drone logistics, including regulatory hurdles, noise concerns, and physical obstacles like trees or landscaping. Analysts note that the technology is still in a “test and learn” phase and currently handles only a small fraction of total annual package volumes.