Summary of Key Points
Drone logistics has already made significant progress—there is technology, pilot projects, and successful cases (such as China Post’s 290 flight routes and Jituo’s 10-fold increase in transportation efficiency for Fengjie navel oranges). However, it has yet to achieve widespread adoption on a large scale. The real issue is not whether drones can fly, but whether they can be integrated into a sustainable aerial logistics network. The lack of such a network is due to low operational efficiency, inconsistent infrastructure, the absence of specialized operators, and misselection of use cases. The industry’s focus is shifting from competing on who can fly the farthest to who can establish a reliable network. Branchline transportation (in mountainous areas, islands, and offshore platforms) is more feasible for commercialization than last-mile delivery.
Why hasn’t drone delivery taken off? The lack of a sustainable aerial logistics network
Many believe that the failure of drone logistics is due to technical limitations, but real-world examples show that drones can deliver navel oranges, medical supplies, and goods to remote islands. The actual bottleneck is the absence of a high-frequency flight route network. For instance, Jituo’s pilot project in Fengjie, Chongqing, demonstrated that drones can transport goods ten times faster than humans. However, if drones only fly a few times a day, even advanced technology cannot cover the costs (just like taxis that lose money if they make only one fare per day). Only by connecting individual cases into a network with daily flights and multiple aircraft in operation can costs be reduced, making it worthwhile for logistics companies to use this technology long-term. Although China Post has 290 flight routes, most of them are in special areas like mountainous regions and islands, which do not form part of a comprehensive logistics system.
Two major obstacles preventing the establishment of a network: operational efficiency and infrastructure
Operational efficiency: It’s not about how far a drone can fly in one go, but about how frequently and reliably it can operate
Yu Feng Future’s vice president calculated that what determines costs is not the distance covered in a single flight, but rather how many flights a route makes per day and how many hours a drone operates annually. For example, a drone that flies for only 100 hours a year will have high costs; if it can fly 1,000 hours, the cost per hour will decrease significantly. The industry’s competition is now shifting from who has the best drones to who can get them to fly more and stop less.
Infrastructure: Without a ground-based network, an aerial network cannot be established
Experts in low-altitude logistics suggest that the infrastructure for this sector is similar to that of highway service areas, including landing sites, charging stations, communication systems, and regulatory platforms. If these standards are not unified, drones operating across regions will face additional costs. Only when ground infrastructure is well-established can an aerial logistics network function effectively.
Who will build this network? Professional operators are needed
The current low-altitude logistics industry chain has strong ends but a weak middle: drone manufacturers and logistics companies with orders. What’s missing is an intermediary, similar to air freight forwarders, who can coordinate flight routes, schedule drones, and manage airspace to create a connected network. Jituo’s Zhang Yaze believes that such professionals are essential; they need to understand drones, airspace regulations, and logistics needs to turn scattered flight routes into a continuously operating network. Without them, drones will remain isolated and unable to achieve significant impact.
Where to start? Branchline transportation is more promising than last-mile delivery
In the past, focus was on using drones for last-mile deliveries (e.g., within residential areas), but this year companies are turning to branchline transportation. Why?
- Last-mile delivery: Short distances, small volumes, and fluctuating demand make it difficult to achieve high-frequency flights and reduce costs.
- Branchline transportation: Examples include transporting agricultural products in mountainous areas, supplies to islands, and goods to offshore platforms. These scenarios have stable demand, moderate distances, and leverage drones’ advantage of being unaffected by complex terrain. For instance, using drones to deliver food and medicine to offshore oil platforms saves millions annually and is more resilient to typhoons than manned helicopters.
The future competition will not be about flying distance, but about speed of delivery
The core value of drone logistics is to complement traditional logistics in areas where cars cannot reach, such as mountainous regions and islands, or for urgent medical deliveries. The industry is entering a critical phase of commercialization. Success will go to those who can integrate scenarios, infrastructure, and operational systems to create a comprehensive network. It’s not about who has the longest-range drones or the highest payload capacity, but about who can make this aerial logistics network truly operational.
In summary, the breakthrough for drone logistics lies not in whether drones can fly, but in whether they can be integrated into a sustainable network. This requires improvements in operational efficiency, infrastructure, professional operators, and the right selection of use cases. Once all these elements are in place, we may see drones operating regularly in the sky.