Amazon.com, Inc. (AMZN) and Google Inc. (GOOGL) Could Lose Race for Same Day Delivery

Google Inc. (NASDAQ:GOOGL) announced its intentions of getting Project Wing, a potential self-flying aircraft delivery service, from research to product and was quickly followed by Amazon.com, Inc. (NASDAQ:AMZN) to express its intentions of summoning drones to make deliveries. However, a short interview on Yahoo! Finance says that these two IT giants might be surprised by the performance of brick-and-mortar retailers.

The innovative idea might face FAA regulations as an obstacle on the grounds of safety and privacy concerns. Besides this, we can’t be sure neither of their ability to complete the project in the short term perspective nor the actual coverage for this particular type of service.

Also, while struggling to get delivery to a new level, Google Inc. (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) might face other issues regarding competition. Macy’s, Inc. (NYSE:M) is believed to have the potential of satisfying customers through a same-day delivery program.

“[…] I believe Macy’s will announce a major same-day delivery program within the next twelve months. They’re already piling it in, I believe, in four markets and once they have the foundation and technology, they’re already working with UPS and FedEx, and I believe also eBay, to get the program off the ground, once you have the ability to satisfy orders within an hour it’s going to be massive […],” claimed Brian Sozzi, the CEO of Belus.

An example of effective shipment is also Best Buy Co Inc. (NYSE:BBY), which offers the possibility of ordering online and getting the product shipped from the nearest retail store. This strategy transforms the stores into depots. Nevertheless, it offers the possibility of efficiently changing the stocked items and also delivering them rapidly to the customer. We can’t say this will be enough to satisfy the current needs of the markets, also these brick-and-mortar giants might prove not so dynamically prone to such changes due to a large re-allocation of assets and re-forming of strategies.  Even so, Google Inc. (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) might find it better to delay the drones and focus on the traditional methods of delivery for the time being. A year might prove a long enough period for critical changes after all.

Disclosure: none