Impact and takeaways Following successful testing and piloting and buy-in from the FAA, Flytrex’s operations have grown to a robust operation, with a substantial growth in its eligible customer base in the US – a 138% increase between 2021 and 2022; 2022 saw over 85,000 grocery items delivered through Flytrex’s drones.48 The company grew on this success by delivering to 81% more households in 2023 compared to 2022,49 and has capitalized on successful trials in North Carolina and Texas to provide drone deliveries in new cities in the US.50 In 2022, the company carried out over 22,000 flights without any serious crashes or incidents.51 The pilots in North Carolina and Texas have shown the potential for drone delivery to provide a reliable, convenient and safe alternative for last-mile deliveries, offering the potential to reduce vehicle numbers and tackle congestion from the deliveries sector. The ability of drones to navigate complex environments effortlessly and offer rapid delivery times, especially for urgent or time-sensitive packages, holds promise for alleviating pressure on road networks in the future. Although the initial setup costs are considerable and may affect adoption rates, operational expenses are often lower due to reduced energy consumption and fewer human resources needed for operation. However, unlocking the full potential of drones for deliveries hinges on establishing a robust regulatory framework and obtaining necessary certifications. Industry stakeholders and regulatory authorities need to collaborate in creating a framework conducive to safe and efficient drone operations. Social acceptance of drones for deliveries and other purposes will also be a crucial factor; at present, drones do not have widespread public support, particularly regarding operations near or over households.52 Combatting Congestion: How Cities and Companies are Innovating First- and Last-Mile Transport 15

Combatting Congestion 2025