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Amazon Is Developing Smart Glasses for Delivery Drivers to Boost 'Last Mile' Efficiency

Industry dynamics 2024-11-12 12:31:28 Source:

Amazon Is Developing Smart Glasses for Delivery Drivers to Boost 'Last Mile' EfficiencyAmazon is developing smart glasses for its delivery drivers to help them complete deliveries more efficiently, according to five people familiar with the matter. The glasses will provide drivers with precise indoor and outdoor navigation routes, guiding them to each delivery location using a small embedded screen

Amazon Is Developing Smart Glasses for Delivery Drivers to Boost 'Last Mile' Efficiency

Amazon is developing smart glasses for its delivery drivers to help them complete deliveries more efficiently, according to five people familiar with the matter. The glasses will provide drivers with precise indoor and outdoor navigation routes, guiding them to each delivery location using a small embedded screen. This precise navigation could save seconds on each delivery by guiding drivers to the correct direction after exiting an elevator, navigating around security gates, and even avoiding obstacles like aggressive dogs.

Amazon delivers millions of packages every day, and even saving a few seconds per delivery would add up to significant efficiency gains. The glasses would also free up drivers' hands from holding GPS devices, allowing them to carry more packages.

The project highlights Amazon's efforts to reduce its delivery costs and improve its profit margins as it faces fierce competition from retailers like Walmart in the e-commerce space. Walmart has been aggressively expanding its e-commerce business in recent years, dropping prices and offering incentives for independent delivery drivers to deliver online orders during the holiday shopping season.

 Amazon Is Developing Smart Glasses for Delivery Drivers to Boost

However, sources cautioned that the project could be shelved or indefinitely delayed if the delivery glasses don't meet expectations or face financial or other obstacles. They said it could take years to perfect the glasses' features.

Asked about the delivery glasses, an Amazon spokesperson said: "We're always innovating to create a safer and more efficient delivery experience for our drivers." "Beyond that, we don't typically comment on our product roadmap."

Amazon has been building out its internal delivery network for years, including building its own airline, long-haul trucking fleet, and a massive network of suburban warehouses. These moves have aimed to reduce Amazon's reliance on delivery companies like UPS and FedEx, further improving delivery efficiency and reducing costs. Amazon's transportation costs rose 8% in the third quarter to $23.5 billion, according to data.

The "last mile" of delivery is both expensive and complex, requiring more delivery personnel, more fuel consumption, and navigating community-level streets. It is estimated that about half the cost of getting a product from a warehouse to a customer's doorstep occurs in the last mile. Now, Amazon is focusing its attention on this area.

In October, Amazon launched a scanner mounted on top of delivery vans to guide drivers to the correct package for each delivery destination using a green spotlight, saving time spent on reading package labels. Sources said the delivery glasses under development are based on Amazon's EchoFrames smart glasses. The glasses allow users to listen to audio and use Amazon's virtual assistant Alexa to give commands.

Sources said the delivery glasses, codenamed Amelia, rely on a small screen mounted on the lenses, which can take photos of packages as proof of delivery. In September, Amazon launched a chatbot for third-party sellers unrelated to this project, also called Amelia.

Amazon's delivery glasses are still in development. Sources said the company has been struggling to create a battery that can last eight hours continuously and is light enough to be worn comfortably by drivers all day long. They also said gathering comprehensive data on every house, sidewalk, street, curb, and driveway could take years.

Amazon said delivery drivers visit more than 100 customers per shift. As delivery efficiency improves, Amazon could ask drivers to carry more packages and visit more homes. Sources said Amazon could also face challenges, including convincing thousands of drivers to use the glasses, which could be uncomfortable, distracting, or aesthetically unappealing, especially for drivers who already wear vision correction glasses.

However, sources said most of Amazon's delivery teams are from outsourcing companies, meaning Amazon might be able to make wearing smart glasses a contractual requirement.

Amazon's consumer-facing wearable, Echoframe, has seen poor sales. Two of the sources said Amazon sold less than 10,000 units of the latest generation of EchoFrames, which were released late last year. An Amazon spokesperson disputed the sales figures, saying actual sales were higher but declined to provide specific numbers.

Two of the sources said the embedded screen under development will also be used for the next generation of EchoFrames, which is expected to be released as early as the second quarter of 2026.

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