CASE STUDY 4 Drone delivery services Holly Springs, Fayetteville, Raeford and Granbury, USA Implemented STATUS Overview of mobility challenge Home delivery volume continues to grow as shoppers move from the high street to online. Consumers are not just looking for faster delivery times, but they are also pushing for increased flexibility and visibility. Shoppers increasingly want to be able to select the timing and location of each delivery, tracking deliveries all the way and experiment with frequent orders with smaller quantities. These changing consumer behaviours and preferences around deliveries are leading to companies exploring options for more home deliveries that can be fast, reliable and economical. More delivery vehicles on the road to meet increased demand for rapid home delivery of goods inevitably puts more pressure on transport systems, including for last-mile deliveries, leading to congestion on city roads, particularly in dense urban areas.38 In the United States, demand for fast home deliveries has increased significantly in recent years. E-commerce and logistics players are recording huge increases in customers choosing next-day or even same-day delivery options, with these companies putting significant resources into expanding such services.39,40 Indeed, the market size for same-day delivery is set to increase by around 50% by 2030,41 and reports suggest that the vast majority of major retail players in the US are planning to offer same-day delivery services by 2025.42,43 Meanwhile, home food deliveries continue to increase in popularity, with the US meal deliveries market estimated to be worth almost $100 billion by 2029.44With demand for rapid home deliveries set to increase, it is vital to find solutions that can tackle congestion from last-mile deliveries while providing cost-effective, efficient, end-to-end deliveries. Solution: Flytrex autonomous delivery drones Aerial delivery drones have emerged as a promising solution in autonomous last-mile delivery services as a way to reduce traffic and emissions. In the US State of North Carolina, the Federal Aviation Administration (FAA) granted a license for drone delivery operations in the towns of Holly Springs, Fayetteville and Raeford as part of a pilot project. The town of Granbury, Texas, was also included in this trial.45 Drone delivery start-up Flytrex was selected for running delivery operations in these areas, offering fast, safe and cost-effective airborne deliveries directly to customers’ front and backyards.46 Through the trial, the company has been testing food deliveries from restaurants directly to customers’ homes in these towns. When an order is ready for collection at a restaurant, the company’s drone travels to the restaurant and hovers above the collection area. It deploys a descending wire, enabling restaurant staff to affix the package directly to the tethered hook. After loading, the drone transports the order to customers’ homes, gradually releasing the delivery via a tether system.47 Combatting Congestion: How Cities and Companies are Innovating First- and Last-Mile Transport 14

Combatting Congestion 2025