One of the winners of the drone delivery permit in China will be the internet retailer JD.com Inc. (JD). A major change to the current logistics sector of the group would be the latest method of distribution.
The country’s first delivery standard for unmanned aerial vehicles was issued by China’s State Postal Bureau this week. Permission for drone delivery could most likely be received as early as March 2021. Drones weighing up to 115 kg, holding up to 35 kg of merchandise, would be able to travel at speeds of up to 95 km/h, according to published reports. The procurement of such an authorization opens up a large opportunity for JD.com, which also operates a large logistics department.
For several years, the organization has invested in drone delivery, and securing such approval would allow the retailer to extend delivery addresses. JD.com would, in turn, be able to serve isolated rural areas and small towns. For JD.com, small cities are a significant audience. In recruiting users from small towns, the business spends a lot. Around 80 percent of new consumers were inhabitants of peripheral cities in the past century.
JD.com develops the logistics market as a separate company. The business not only follows its own orders but also supplies third-party businesses with services. Revenue from JD.com services last quarter rose by 43 percent year on year and accounted for 13 percent of overall revenue. The JD Logistics division was one of the most significant drivers of progress. JD.com also has some of the world’s most innovative distribution technologies, including an integrated facility in Changzhou, which only has four staff under its control.
JD.com Inc (JD)’s stock was worth $87.77 at the January 15 trading, remained stable this year so far with a 0.15% decline but having increased by more than 121 percent over a year.