Aramex, the Middle East's biggest courier company, has completed testing drone delivery in Oman, marking a first step in streamlining its business with emerging technologies and reducing its carbon footprint.
The test flights, which were conducted in co-ordination with US-based UVL Robotics, are part of the Dubai-listed company's strategy to significantly reduce last-mile delivery times and transition to a more sustainable delivery fleet, Aramex said in a statement on Wednesday.
The company said it plans to expand its drone delivery testing across the Middle East and its other core markets, but did not specify which countries.
Aramex's sustainability programme calls for a shift to emission-free electric and hydrogen fuel cell vehicles, which in turn would "significantly" cut its greenhouse gas emissions and reach carbon neutrality by 2030, Alaa Saoudi, Aramex's chief operating officer for express, said.
“We believe the next generation of last-mile solutions, including drones and autonomous vehicles, will be a game-changer as it ensures efficient delivery while being eco-friendly.
"Through the successful drone delivery testing, we have proven that these automated modes of delivery will enable us to further enhance the speed, accessibility and reliability of package deliveries, especially to remote areas with hard-to-reach terrain."
Logistics and cargo companies witnessed a sharp growth in activity in 2020 after the Covid-19 pandemic struck, when safety measures drove more consumers to shop online.
However, the industry has been hit with rising costs due to supply chain bottlenecks, rising inflation rates and higher oil prices that have put pressure on margins.
Drone deliveries, seen as the next evolution in the logistics market, are being tipped to improve efficiency, with its faster delivery times and sustainable model meant to cope with user demand and comply with environmental goals, respectively.
Alphabet, the parent company of internet major Google, already has its Wing drone delivery service. Amazon, the world's biggest e-commerce marketplace, is set to begin drone deliveries in the US this year.
The drone package delivery market is projected to reach about $5.6 billion by 2030 from $228 million this year, at a compound annual growth rate of almost 50 per cent, data from research company Markets and Markets shows.
Aramex's successful trial is part of its Future Delivery Programme, and the drones are expected to potentially cut transit times by half in complex routes, said Angad Singh, the company's global director for innovation.
“This means we can now add more value for our customers and consignees as we can accelerate the delivery of packages across different sectors including e-commerce, health care and pharmaceuticals, amongst others," Mr Singh said.
Aramex has been testing and adopting electric vehicles into its fleet since 2017. The company's Jordan operations now use EVs, and testing continues in the UAE, Saudi Arabia and Egypt.
In August, Aramex reported a 32 per cent annual decline in its second-quarter net income as revenue fell due to lower courier volumes.
