Drones For Last-Mile Delivery Are Transforming Logistics but Are Yet to Fully Take-Off

In 2022, logistics providers and delivery companiestransported about 161 billion parcels around the world. By 2027, this is projected to rise to 267 billion parcels. Drones for cargo could ease the burden for last-mile-delivery of these small shipments but the use of this technology is still heavily challenged with regulatory, safety and security concerns.

The first-ever commercial drone delivery took place a little over a decade ago in China. Called ‘Fast Service’, drones were usedto deliver medicines to remote places. Amazon with its ‘Prime Air’ followed suit, delivering parcels weighing less than five pounds and within 30 minutes range.

In 2017, the United States Federal Aviation Administration allowed UPS to use drones to transport packages, but with a caveat that the drones should operate only in daylight. During the pandemic, the usage of drones increased, yet its deployment has not been as anticipated and the reason for that is not technology but due to challenges of certification and regulation.

For instance, in May 2023, Dronamics, the world’s first cargo drone airline, completed its first flight of its flagship aircraft, the Black Swan, at Balchik airport in Bulgaria but is yet to commence commercial operations, though it had announced that it would happen in 2024.

Black Swan, the company mentions, can carry 350 kg (770 lb) for a distance of up to 2,500 km (1,550 mi) up to 80% faster, 50% cheaper and with up to 60% lower emissions than alternative modes of transport, including airfreight.

This proven technology enables same-day shipping over very long distances for a variety of industries: from pharma to food, from e-commerce to spare parts. The industry is awaiting Dronamics to commence commercial operations soon even while the company has secured launch customers including Hellmann Worldwide Logistics (Germany), Hellenic Post (Greece), Emirates Post Group (UAE), Aramex (UAE), Qatar Airways Cargo, among others.

Qatar Airways Cargo, the world’s largest international cargo carrier, in end 2023 entered into an interline agreement with Dronamics where the latter is to offer cargo services from any of its droneports, initially in Greece, to the wider Qatar Airways Cargo network, including destinations such as Singapore, China, Hong Kong, and the United States (JFK).

Qatar Airways Cargo will be able to access remote locations that Dronamics serves, such as the Greek islands, which is on Dronamics cargo drone network.

“As a part of our VISION 2027 5-year strategy, we are committed to remaining at the forefront of our industry by embracing new disruptive technology. It is also within our DNA to support young ambitious companies like Dronamics and we are looking forward to seeing what the future holds for this exciting business. It is a significant milestone in the advancement of autonomous cargo drone transportation and we are proud to be the first international airline to offer this service,” Elisabeth Oudkerk, SVP Cargo Sales & Network Planning at Qatar Airways Cargo has said.

Safety and Security Concerns
Yes, the future is exciting. While some of the operators have the network in place, regulatory/safety and security concerns are getting addressed, albeit slowly.

Technology is not an issue. Companies are working on the security/safety issues with regulators. The process has to be dynamic considering how the skies can get crowded without proper regulations.

TopView is leading an international research initiative called CertiFlight, and has developed a device using satellites to securely track where a drone is located and the same is shared with nearby aircraft, air traffic control and the drone operators themselves.

The technological progress in the drone realm is amazing and the applications are varied, hence, the challenges of regulation remain. In the recently concluded Aero India 2025, several players, many of them startups, showcased drone technologies for various purposes – cargo, ISR (intelligence, surveillance and reconnaissance), humanitarian relief, etc.

The opportunities are aplenty and E-commerce and other logistics companies are awaiting their deployment having understood their usefulness – last mile delivery and short to medium distance transportation; inventory management and order picking; and surveillance and inspection.

India’s most powerful cargo drone
At Aero India 2025, Bengaluru-based drone manufacturer Scandron introduced the CargoMax 20KHC, touted to be India’s most powerful cargo drone, having a payload capacity of 200kg (Black Swan has 350kg payload), this autonomous aerial logistics platform is built to support the Indian armed forces, paramilitary units, and emergency response teams.

Scandron has set up a manufacturing facility in Ladakh, where the drone will be produced. “We wanted to have the manufacturing facility in Ladakh as we want to be closer to the defense customers. Also, the 200kg capacity drone will face challenges in being transported to the customer from a single manufacturing facility in Bengaluru, so it is better to be close to our customers,” said Arjun Naik, CEO and Founder of Scandron. The CargoMax 20KHC boasts an operational range of 15km and an altitude ceiling of 6,000 meters above sea level. It is engineered to operate in demanding environments, including high-altitude regions, deserts, and naval zones.

“The CargoMax 20KHC is designed to provide the Indian armed forces with a stable, reliable aerial logistics platform for last-mile deliveries. All our CargoMax drones have variants that enable them to offer superior logistics capability, whether it is for highaltitude operations, desert operations or naval operations The drone is fully autonomous, requiring no pilot intervention, and features a common command-and-control system with built-in redundancies for safety and reliability. It can execute pinpoint landings, including on moving naval platforms, making it suitable for maritime supply missions,” Naik added.

And it is not just the armed forces the company is targeting but other industries too which have logistical needs and is working on ‘Airawat’, drone with 500 kg payload.

Drone market to touch $1.43 billion by 2029
The Indian drone market is projected to grow from $654 million in 2024 to $1,437 million by 2029, at a CAGR of 17 percent during this period. The drone volume in India is expected to rise from 10,803 units in 2024 to 61,393 units by 2029, reflecting the humongous growth potential. The government is encouraging startups and Micro, Small and Medium Enterprises (MSMEs) to invest in drone technology.

India-based, Droneco, the logistics arm of drone tech startup, TSAW Drones, has claimed to have delivered 43,256 packages as of 2025, having done nearly 294 flight hours, covering 25,045 kms.

Set up in November 2022, Droneco is currently running on three routes in two states, serving Kolkata and Nizamabad. The brand is witnessing high deliveries from the health sector and with its aggressive outreach approach is now looking forward to adding e-commerce, q-commerce, agriculture, and defence deliveries. Droneco’s clients include Medvolant, Tata 1MG, GIMS, and Kanhaiya Life Care Medicine.

It was during the COVID-19 pandemic that drone cargo got a boost. In September 2021, a drone made a “Beyond Visual Line of Sight” (BVLOS) flight carrying a box of life-saving medicines and vaccines in Vikarabad district of Telangana.

The ‘Medicines from the Sky’ project covered a distance of six km in about five minutes, showcasing the potential of cargo drones for solving critical logistics problems at relatively low costs. The pandemic highlighted some innovative roles that drones could play, such as public space monitoring during lockdowns and aerial spraying of disinfectants.

Government Simplifies Rules
In 2021, the government of India simplified Drone Rules. As per the rules, authorization is only required when there is a departure from prescribed procedures. The documentation required to obtain a drone usage permit is simplified substantially. Fees to get a remote pilot license have also been reduced. “Digital Sky” is being developed as the user-friendly, single-window online system for all approvals and permissions.

The Ministry of Civil Aviation (MoCA) has a Production Linked Incentive scheme to boost the drone manufacturing sector and has set aside funds for MSMEs. The Directorate General of Civil Aviation of India (DGCA) has released a dynamic interactive map within the Digital Sky platform indicating the various zones where drones can operate through colour coding.

The road ahead for India’s logistics ecosystem is full of opportunities and challenges and the country is sorting issues related to human resources, infrastructure, network design, awareness, pricing and safety and security.

For drones to take-off commercially, the adoption rates need to be high enough to decrease costs through economies of scale, besides remaining competitive to alternate transportation modes such as a motorcycle or a pick-up truck at similar or higher safety and service levels.

It has to be price competitive, competing with the likes of Swiggy, Zomato, Amazon, Zepto, Blinkit and others who pay their delivery partners a ‘decent sum’, for delivering in some instances, less than 10- minute deliveries. These have to be factored in, but sure enough, drones will soon be part of the overall transportation network the world over in the notso- distant future.