Kroger Is Ahead Of The Game When It Comes To Drone-Based Delivery
We are starting to see an increasing number of brands turn to autonomous vehicles as a means of getting their products across the last mile and into the waiting hands of eager customers.
Amazon has been pontificating over its Prime Air drone delivery system for some time now, having finally gained federal authorization to begin testing in the US. In Australia, Dominoes has trialed pizza delivery using land-based robots, and food delivery giant, Just Eat has also been experimenting with the technology.
The popularity of autonomous delivery systems is only likely to gain further popularity in the face of the Great Resignation and global labor shortages in several key industries, which is seeing roles at many large carrier brands remain unfilled.
Taking the human out of the equation means brands struggling to attract new talent will be able to maintain the flow of goods between themselves and their customers regardless.
Kroger
One brand which has been making serious roads into its own drone delivery program is grocery superstore retailer, Kroger. Having seen the surge in popularity in home delivery for grocery products brought about by the pandemic, Kroger knows all too well how drones could help it fulfil more orders in less time and using fewer resources.
In the first half of 2021, Kroger announced its intention to begin testing in the use of unmanned autonomous vehicles to meet this surge in demand for home delivery services – feeding into the brand’s already storied history of technological innovation.
"Our founder Barney Kroger was a born innovator," said Kroger in a press release. "His pioneering milestones in customer service and manufacturing led the way to the highly personalized, relevant, and convenient customer experiences we offer today. New collaborative work with industry-leading partners gives us the expertise to offer our customers even more in service, selection, and convenience."
Partnering with Drone Express, Kroger imagines a future where grocery deliveries could be made to any location – not just a home address – within moments of the customer placing an order.
"The pilot offers flexibility and immediacy to customers, powered by modern, cost-effective, and efficient last-mile solutions," continued the company. "Drone Express technology allows delivery not only to a street address but to the exact location of a customer's smartphone. That means a customer can order delivery of picnic supplies to a park, sunscreen to the beach, or condiments to a backyard cookout."
Expanding the Pilot
The initial testing has proved so successful that Kroger has recently announced further expansion of the program.
In November 2021, Kroger announced it would be making the service available to residents in the catchment area of its Dayton, Ohio store location. Customers who live within two miles of the location will be able to order products weighing up to five pounds using their smartphone and have them arrive within an hour, and as little as 15-minutes, from completing the checkout process.
"If you're at home cooking Thanksgiving meals, you're low on spices and you need to add in yams or something else, you can create your own bundle and have that order delivered to you," said Corporate Affairs Manager for Kroger, Jenifer Moore. "What happens is the store associates go ahead and shop for you. And then it comes out to the drone delivery portion of our store where they weigh just to make sure that it's within the capacity limits, pack it up, make sure that items in the box are secure, then the drone picks it up and delivers it to you."
However, Kroger’s foray into autonomous delivery systems doesn’t end there, with the brand announcing in January 2022 its intention to offer a similar service in Houston, Texas.
This time, the retailer will be partnering with Nuro and its third-generation autonomous delivery vehicle.
This land-based craft will have a far greater capacity than the airborne drones and will be more than capable to deliver a full grocery order to customers. The vehicle has no passenger capacity art all and houses modular inserts which enables Kroger to customize storage depending on the size and contents of the order and offers temperature-controlled compartments to keep food warm or cool where necessary.
Final Thoughts
With so many huge brands experimenting with autonomous delivery systems, it certainly feels like this could be the future of last mile delivery. With the reduced operational costs and carbon footprint of electricity powered and unmanned vehicles, they appear to be good for the planet and for business.
Autonomous delivery systems are sure to be part of the conversation at Retail Delivery Connect 2022, taking place in August at The Westin Fort Lauderdale Beach Resort.
Download the agenda today for more information and insights.