ARE DRONES TRANSFORMING TRANSPORTATION AND LOGISTICS FOR THE LAST-MILE REACH IN THE URBAN LANDSCAPE

Authors

  • Ms Gauri Gandhi B.E (AI&ML) ,M.S first year at Northeastern University, Boston
  • Dr Harshall Gandhi Asst. Professor Prin L N Welingkar Institute of Management Development & Research, Mumbai

DOI:

https://doi.org/10.69980/tkcthb18

Keywords:

Drone logistics, last-mile delivery, urban logistics, operations management, business innovation, supply chain management

Abstract

The rapid growth of e-commerce, urban congestion, and rising customer expectations for faster delivery have increased pressure on last-mile logistics systems. This study examines the role of drone technology in improving urban last-mile delivery from business, operational, sustainability, and managerial perspectives. The purpose of the study is to evaluate how drone-enabled logistics can enhance delivery efficiency, accessibility, cost performance, and strategic value while identifying major barriers to large-scale adoption. A secondary research approach was adopted, using peer-reviewed literature, industry reports, government publications, and case studies of Amazon Prime Air, UPS Flight Forward, DHL Parcelcopter, and Zipline. The findings indicate that drones can improve delivery speed, reduce dependence on congested road networks, support access to hard-to-reach areas, and create value in urgent, lightweight, and healthcare-related deliveries. Adoption remains limited by payload capacity, battery life, weather dependency, infrastructure needs, regulation, safety, privacy, and public acceptance. The study concludes that drones are more effective as complementary tools within hybrid logistics networks than as complete replacements for traditional delivery systems. Managerially, firms should adopt drone logistics selectively through cost-benefit analysis, regulatory compliance, infrastructure planning, and strategic integration with existing supply chain operations.

References

1.Agatz, N., Bouman, P., & Schmidt, M. (2018). Optimization approaches for the traveling salesman problem with drone. Transportation Science, 52(4), 965-981.

2.Amazon. (2024). Prime Air delivery program overview. Amazon Corporate Reports.

3.Aydin, B. (2019). Public acceptance of drones: Knowledge, attitudes, and practice. Technology in society, 59, 101180.

4.Boysen, N., Fedtke, S., & Schwerdfeger, S. (2020). Last-mile delivery concepts: a survey from an operational research perspective. OR spectrum, 43(1), 1-58.

5.DHL. (2023). Parcelcopter project and autonomous logistics solutions. DHL Innovation Center Report.

6.Dorling, K., Heinrichs, J., Messier, G. G., & Magierowski, S. (2016). Vehicle routing problems for drone delivery. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 47(1), 70-85.

7.European Union Aviation Safety Agency. (2024). Drone strategy 2.0: A smart and sustainable ecosystem for unmanned aviation. EASA.

8.Federal Aviation Administration. (2024). Unmanned aircraft systems integration roadmap. FAA.

9.Finn, R. L., & Wright, D. (2012). Unmanned aircraft systems: Surveillance, ethics and privacy in civil applications. Computer Law & Security Review, 28(2), 184-194.

10.Goodchild, A., & Toy, J. (2018). Delivery by drone: An evaluation of unmanned aerial vehicle technology in reducing CO2 emissions in the delivery service industry. Transportation Research Part D: Transport and Environment, 61, 58-67.

11.Joerss, M., Schröder, J., Neuhaus, F., Klink, C., & Mann, F. (2016). Parcel delivery: The future of last mile. McKinsey & Company, 1, 32.

12.McKinsey & Company. (2023). Parcel delivery: The future of last-mile logistics. McKinsey Global Institute.

13.Ministry of Civil Aviation. (2021). The Drone Rules, 2021. Government of India. https://egazette.gov.in/WriteReadData/2021/229221.pdf

14.Ministry of Civil Aviation. (2022). The Drone Rules, 2021: Realising our collective vision of an Aatmanirbhar Bharat. Government of India.

15.Ministry of Commerce and Industry. (2025). Logistics: India’s growth engine. Government of India.

16.Morgan Stanley Research. (2024). Urban air mobility and drone logistics market outlook. Morgan Stanley.

17.Murray, C. C., & Chu, A. G. (2015). The flying sidekick traveling salesman problem: Optimization of drone-assisted parcel delivery. Transportation Research Part C: Emerging Technologies, 54, 86-109.

18.NITI Aayog. (2026). Reports and publications. Government of India.

19.Otto, A., Agatz, N., Campbell, J., Golden, B., & Pesch, E. (2018). Optimization approaches for civil applications of unmanned aerial vehicles (UAVs) or aerial drones: A survey. Networks, 72(4), 411-458.

20.Park, J., Kim, S., & Suh, K. (2018). A comparative analysis of the environmental benefits of drone-based delivery services in urban and rural areas. Sustainability, 10(3), 881.

21.PwC. (2023). The future of drone-powered logistics. PricewaterhouseCoopers.

22.Rao, B., Gopi, A. G., & Maione, R. (2016). The societal impact of commercial drones. Technology in society, 45, 83-90.

23.Rejeb, A., Rejeb, K., Simske, S. J., & Treiblmaier, H. (2023). Drones for supply chain management and logistics: a review and research agenda. International Journal of Logistics Research and Applications, 26(6), 708–731. https://doi.org/10.1080/13675567.2021.1981273

24.Stolaroff, J. K., Samaras, C., O’Neill, E. R., Lubers, A., Mitchell, A. S., & Ceperley, D. (2018). Energy use and life cycle greenhouse gas emissions of drones for commercial package delivery. Nature Communications, 9, Article 409. https://doi.org/10.1038/s41467-017-02411-5

25.Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence‐informed management knowledge by means of systematic review. British journal of management, 14(3), 207-222.

26.UPS Flight Forward. (2024). Drone healthcare delivery operations. UPS Corporate Publications.

27.World Bank. (2023). Emerging technologies and logistics transformation in smart cities. World Bank.

28.World Economic Forum. (2020). Medicine from the sky: Opportunities and lessons from drones in Africa. World Economic Forum.

29.World Economic Forum. (2022). Medicine from the Sky, India: Taking primary healthcare to all. World Economic Forum.

30.World Economic Forum. (2024a). How medicines “dropping from the sky” are transforming healthcare in India. World Economic Forum.

31.World Economic Forum. (2024b). The future of drones and urban air mobility. World Economic Forum.

32.Zipline. (2021). The role of autonomous drone delivery in healthcare logistics. Zipline.

33.Zipline. (2025a). Solutions for businesses. Zipline. https://www.zipline.com/solutions/business

34.Zipline. (2025b). Solutions for governments. Zipline. https://www.zipline.com/solutions/governments

Downloads

Published

2026-06-30