Drones: The New Weapon in the Logistics Industry’s Evolutionary Battle?

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Drone logistics ( Delivery ) It is becoming the next battleground for the express delivery industry.

In the average person’s mind, A drone might be a “Toys,” for example, can be used for aerial photography.

Drones might also be a… “Gimmicks,” such as using drones to deliver coffee directly to the balcony of a high-rise room, certainly look impressive. As early as 2018, Zhejiang Online conducted a live stream in which a drone carrying coffee and a reporter’s car set off simultaneously for a “race.” The drone delivered the coffee to the designated drop-off point in just 15 minutes, while the car had barely made it halfway down the street. That same year, Morgan Stanley released a blue‑chip report forecasting that by 2040, the global urban air mobility market would reach US$1.5 trillion, with half of that value accounted for by automated aerial delivery services.

For domestic logistics companies racing against time to meet regulatory deadlines, drones are no longer mere toys or marketing gimmicks—they could well become the next strategic battleground, underpinned by a sophisticated industrial ecosystem.

“Precisely because it remains relatively niche, it can only make genuine progress by riding the wave of broader industry trends,” said Jiang Bin, Competition Director of the World Drone Racing League and Vice President of the Wuxi Drone Association. He noted, “The entry of major logistics players has accelerated the development of the drone sector. As large corporations take notice and join in, and as drone hardware and software become more robust and their payload capacities continue to improve, the concept of drone‑based logistics has finally taken shape.”

In the express delivery industry, enhancing logistics efficiency and improving user experience have become key concerns across the sector. According to forecasts, by… By 2040, drone delivery could account for 30% of same-day parcel deliveries. According to estimates from the Shenzhen Unmanned Aircraft Industry Association, by 2024, the domestic drone market will reach RMB 160 billion, with the drone‑based express logistics segment alone valued at approximately RMB 30 billion.

Broadly speaking, drones can be categorized into military-grade, industrial-grade, and consumer-grade models. As mentioned earlier, the primary type prohibited in hotels is the consumer‑grade drone, with DJI firmly established as the industry leader in this segment. However, a recent announcement has drawn significant attention within the drone community: DJI is now expanding into the drone‑based logistics sector. On August 16, DJI unveiled its first cargo‑delivery drone, the DJI FlyCart 30. According to the company, in dual‑battery mode it can carry up to 30 kilograms and achieve a maximum range of 16 kilometers when fully loaded; the standard kit is priced at RMB 125,000.

Logistics drones are a subcategory of industrial-grade drones. The maturity and market potential of industrial drones vary significantly across different application segments. Among industrial drones, logistics drones account for only a small share. 12%; however, in terms of growth prospects, logistics drones rank among the fastest-growing segments. According to data from the China Business Industry Research Institute, the growth rate of logistics drones stands at 238%, with promising future development potential.

However, the development of drone logistics is far from smooth sailing. Li Dongqi, Vice President of SF Express Group and Chairman of Fengniao Technology, a leading company in the industry, once made a thought-provoking remark: “Logistics is an excellent use case for drones—simple enough, yet complex enough.”

This sentence can be translated straightforwardly as follows: Drones offer vast potential for imagination, yet they also represent an unpredictable variable. Once integrated into a logistics company’s existing operations, even a single change can set off a chain reaction, often leaving people both enamored and frustrated. In the logistics sector, drones can indeed accomplish many tasks that human labor simply cannot handle. However, the logistics industry is, at its core, a complex one. “A system” that must strike a balance between efficiency and stability.

Some industry insiders believe that the industrial logic of low-altitude aircraft faces an intractable “impossible triangle,” namely: “Scale, safety, and cost”—drones are no exception. How can we strike the optimal balance among these three factors? Only by solving this equation correctly can drone‑based logistics (delivery) truly reach a breakthrough moment.

▍ The Relationship Between Line and Net

From the perspective of a logistics company, one of its core values is, in fact, building an efficiently operating capacity‑network. This holds true across most logistics subsectors: only with a robust logistics network can other considerations be addressed. Consequently, in the logistics industry, when companies expand into new markets, they often emphasize that… “Setting up the network” is the first step—only with a well‑established online platform can you secure a steady supply of goods. Of course, building a logistics network is no overnight achievement; it all begins with one route at a time.

The original intention behind the development of drone delivery was to make up for the shortage of human labor. This shortage is not only a matter of quantity but also of complexity. Therefore, drone delivery initially addressed… There are two scenarios: “Humans can’t do it” or “Humans can’t do it well.” The former applies to special environments in remote areas, while the latter applies to adverse weather conditions in urban settings.

Just after the recent National Day holiday, many scenic spots were packed with visitors. Those who toured the Huangshan Scenic Area might not realize that drones are now being used to transport supplies there. With many of Huangshan’s porters having grown quite elderly over the years, Starting in May 2023, following approval by the Huangshan Scenic Area Management Committee, Huangshan Tourism Development Co., Ltd. submitted an application to operate drone‑based cargo delivery services, and DJI’s transport drones began a regular pilot program within the Huangshan Scenic Area. According to reports, these drones can deliver more than 1,000 kilograms of supplies per day. Similar applications are widespread—for instance, delivering relief supplies to mountainous areas during disasters or transporting vaccines to specific destinations—tasks that are often difficult or impractical for human operators.

However, it is worth noting that these transportation activities all fall under the category of specialized logistics. For instance, in the logistics sector, the transport of hazardous chemicals is handled by specialized companies. Yet such firms typically require specific qualifications, serve a relatively niche market, and do not engage in… Consumer services for C.

In recent years, the rapid development of drones has been driven by both the corporate sector and the general public, with consumer demand at its core. On the corporate side, third-party logistics companies closely tied to e‑commerce and logistics—such as SF Express, JD.com, and Cainiao—are vigorously expanding their drone operations, which help boost internal logistics efficiency. For example, SF Express uses drones to deliver Chinese mitten crabs on Yangcheng Lake: the drones take off from the lake’s center and fly directly to a packaging hub on the shore, completing the entire journey in just… Five minutes. However, in the past, this route had to be traversed on foot around the lake, taking about an hour and a half.

On the consumer side, more and more people are embracing drone delivery. Drones have indeed brought consumers a new level of convenience.

Meituan cited park delivery as an example, where the drone’s strength in handling specialized scenarios proved particularly effective. “Take Shenzhen Talent Park, which recently launched drone delivery services, as an example. Previously, placing a food-order at the park often involved difficulties in pinpointing the delivery address. Descriptions like ‘the fourth lamppost’ or ‘the sixth big tree’ were commonplace, and it could take couriers considerable time to locate these spots within the park, compromising the user experience. With drone delivery, users simply need to head to a designated drop-off locker inside the park to collect their order, saving substantial communication time and cutting delivery times by nearly 50% compared with traditional methods,” said a representative from Meituan’s drone program.

Jiang Bin, Competition Director of the World Drone Racing League and Vice President of the Wuxi Drone Association, stated that the use of drones in food delivery has helped address some of the challenges associated with the “last mile” of logistics.

Logistics enterprises, by their very nature, provide socialized logistics services and must be capable of meeting the demands of complex, diversified, and open‑ended service scenarios. Therefore, if drone delivery merely confines itself to point‑to‑point routes… “Transportation” cannot be networked, nor can it realize the universal value of logistics services.

However, in recent years, thanks to the concerted efforts of leading logistics companies and ongoing policy support, drones have… “Networking” has begun to yield some modest results.

On the corporate front, SF Express, the leading private-sector courier company, has made significant efforts to advance drone delivery. In March 2018, SF Express was granted China’s first drone aviation operations license (pilot program), a development that many view as marking the official transition of drone delivery toward routine and commercial operations under legal auspices.

In October 2018, SF Express obtained approval for drone operations in the airspace over Yangcheng Lake. By the end of 2022, SF had cumulatively launched 83 drone routes, with approximately 300,000 drone‑carried cargo flights and integrated operational missions. Meanwhile, SF established urban logistics and express delivery pilot zones in Nanshan and Longhua districts of Shenzhen, creating a low‑altitude drone logistics network that covers the entire city.

And at the policy level, In September 2020, the Ministry of Transport issued the industry standard “Operational Requirements for Drone-Based Logistics and Delivery,” which sets forth the basic requirements, site and facility specifications, operational procedures, information‑exchange protocols, and safety measures applicable to both feeder‑line and last‑mile drone logistics operations.

In August 2022, the Civil Aviation Administration of China released the “Civil Unmanned Aircraft Development Roadmap V1.0 (Draft for Public Comment),” outlining a detailed timeline for the development of unmanned aerial vehicles. According to the draft, by 2025, urban short‑distance, low‑speed, light‑weight unmanned aerial vehicles for logistics delivery will gradually mature; by 2030, medium‑ and small‑size unmanned aerial vehicles capable of rapid mid‑range urban logistics delivery will begin to be deployed; and by 2035, medium‑ and large‑size unmanned aerial vehicles designed for fast, long‑distance urban logistics delivery will be progressively rolled out.

In October 2022, the Ministry of Transport and other departments issued the “Guidance on Building a Standards System for Smart Logistics in Transportation,” which includes four standards related to drone delivery.

However, on a national scale, the current drone‑delivery network remains largely a… “Local area networks” often exist in cities or rural areas as “special zones.”

Yuan Shuai, Executive Director of the High-Quality Development Promotion Project for Specialized, Sophisticated, and Novel Enterprises, stated that, “At present, the use of drones in China is largely confined to specific regions and applications, such as last-mile delivery in rural and remote areas, internal warehouse management, and medium- to long-distance feeder‑line transportation. Drones can help establish short‑haul air logistics networks, boost logistical efficiency, and effectively address the high costs associated with traditional delivery methods in remote areas.”

▍ Three-Part Structure and Urban–Rural Settings

Industry insiders point out that, as a delivery tool, integrating drones into existing logistics networks would not be particularly challenging from a broad strategic perspective. The real difficulty lies in… “The value and frequency of shipments.” Someone sharply posed the question online: “What is the cost per kilogram per kilometer for drone‑based logistics (for a certain model)?” To date, no company or research institution in the industry has been able to provide a public answer to such a query. From an economic perspective, the only viable approaches are either raising the unit price (i.e., increasing the value of the cargo) or scaling up—expanding the network or boosting shipment frequency.

In fact, this involves two key questions: first, what can drones do? And second, which types of goods are economically viable to transport by drone?

Regarding the aforementioned issues, players currently formulating their strategies are placing varying degrees of emphasis on different aspects of the solution.

SF Express, whose core offerings include time-sensitive services such as air express, has a delivery network that is closely aligned with the development of China’s e‑commerce industry. SF Group operates two subsidiaries engaged in drone delivery: Fengniao Technology focuses on developing large‑scale drones, while Fengyi Technology concentrates on last‑mile delivery drones. Of course, the boundaries between the two are not entirely clear-cut. Through this approach, SF aims to build… A three-tier air transportation network—comprising trunk‑line large manned aircraft, regional‑line large unmanned aerial vehicles, and last‑mile small drones—aims to deliver parcels nationwide within 36 hours. In March 2021, Fengniao Technology announced the completion of its Series A funding round, co‑invested by Chongqing Liangjiang Aviation Investment Group and SDIC Investment & Development.

In 2015, Richard Liu proposed leveraging drones as a logistics delivery tool to establish a nationwide drone‑based delivery network spanning villages and towns. In 2016, JD.com completed the first-ever drone‑delivered package in Suqian. To date, JD.com has fully automated its drone delivery operations, covering every stage—from cargo loading and takeoff to navigation, landing, unloading, and return flights.

Notably, JD.com’s drone‑based logistics network also adopts a three‑tier air‑transport model. This three‑stage structure is designed to ensure seamless integration between drones and the company’s extensive nationwide delivery network. Typically, logistics and express‑delivery firms capable of nationwide coverage organize their cargo‑handling routes into three segments: trunk‑line transport, intercity (intra‑provincial) delivery, and last‑mile distribution—mirroring the same three‑tier framework.

It is evident that SF Express and JD.com’s drone delivery services share certain similarities: both aim to support nationwide e‑commerce logistics; both tend to deploy drones at the source of goods and upstream in the supply chain to enhance delivery efficiency. The scope of drone operations aligns with their respective nationwide logistics network deployments.

For logistics companies, integrating drones into their supply chain goes beyond simply adopting a delivery tool; it entails establishing a comprehensive, end-to-end logistics and delivery system. Every link—order management, drone dispatch, flight‑path planning, maintenance and repair of drones and spare parts, workforce management, safety oversight, and ground‑station operations—is rigorously testing whether drones can truly serve as a viable part of the operation. The role of the “delivery courier.” In the future, drones will need to be deeply integrated with and seamlessly connected to smart warehousing systems, autonomous delivery vehicles, and other technologies, which will require a comprehensive architectural framework and extensive upgrades to existing systems.

In recent years, thanks to advances in technology and R&D, the payload capacity and flight endurance of various types of drones have continuously surpassed previous limits. But for logistics drones, how do we make the economics add up? While drone delivery has significantly boosted time efficiency in the logistics chain, when you factor in the costs—substantial R&D investments and hefty production expenses—what kinds of goods are truly cost‑effective to transport by drone? As one industry insider put it bluntly: hauling fresh fruit all day long makes it very difficult to break even.

If drones can be deployed at scale, the per-unit manufacturing cost will eventually be spread out. Reportedly, delivery costs in rural areas are higher than in urban areas. Five times as much, whereas drones can effectively address the cost challenge. Take JD.com’s drones as an example: a round-trip of 10 kilometers costs less than the energy consumed by one kilowatt-hour—less than 50 cents—and they deliver faster than truck‑based delivery.

However, logistics and delivery still involve labor costs. Can the ultimate cost of drone delivery be reduced to below that of human labor? This remains a subject of debate within the industry. As one industry insider put it, “As route operations evolve from small payloads, short distances, and low value-added services to large payloads, long distances, and high value-added offerings, the costs of drones and their supporting components will decline once mass production is achieved.” However, he remains skeptical that drone‑based delivery could ever match the cost efficiency of traditional courier and food‑delivery personnel.

Under this line of reasoning, another key question arises: should drone delivery prioritize remote rural areas or urban centers?

When nationwide drone delivery remains out of reach, one option is to establish last-mile delivery networks in core cities—this is also the approach taken by another major player in the drone‑delivery space, Meituan.

Unlike SF Express, JD.com, and the Tongda network, Meituan focuses on same-city instant delivery in medium- and large-sized cities.

Taking its core food‑delivery business as an example, it is not only highly frequent but also directly serves end consumers. Consequently, Meituan faces the challenge of delivering efficiently and safely in densely populated urban areas with complex logistical structures, placing extremely stringent demands on the technology’s security and reliability.

In 2017, Meituan officially launched its exploration project in the field of drone-based logistics delivery. This year, the company has unveiled its fourth-generation drone. As of the end of August 2023, Meituan’s drones have been deployed across seven commercial districts and 17 flight routes in cities including Shenzhen and Shanghai, providing drone delivery services to 14 residential and office communities as well as four 5A‑level scenic areas. To date, the service has fulfilled over 184,000 user orders, covering more than 20,000 product categories spanning food and beverage, beauty, fast-moving consumer goods, supermarkets, electronics, and other sectors.

For Meituan, drone‑based instant delivery has opened up a more efficient delivery channel. In the instant‑delivery sector, during peak order periods—especially the morning and evening rush hours—couriers typically have to navigate complex urban road networks. It takes 30 minutes to reach the destination. However, drone delivery can achieve “3 kilometers in 15 minutes.”

A relevant official from Meituan’s drone division stated, “Compared with traditional delivery methods, the most significant advantage of drone delivery is its efficiency. In 2022, Meituan’s drones achieved an average delivery time of approximately 12 minutes, representing nearly a 150% improvement over conventional delivery models.”

When drone delivery is considered as part of commercial operations, the question ultimately comes full circle. The ultimate answer may still hinge on whether drone delivery can generate its own network effects: by enabling relatively frequent and well‑organized deliveries, it leverages economies of scale—both in terms of the number of service points and the volume of goods—to reduce costs, accelerate adoption, and encourage more users to choose drone delivery, thereby creating a virtuous cycle.

On this point, Jiang Bin, Competition Director of the World Drone Racing League and Vice President of the Wuxi Drone Association, stated, “In both trunk‑line logistics and last‑mile delivery, the development of drones is fairly comparable. In trunk‑line logistics, drones are tasked with reaching areas that highways, railways, waterways, or even aircraft cannot access—tasks typically handled by logistics networks like SF Express or JD.com. The main constraints here stem from hardware‑related factors, such as technological barriers. By contrast, in last‑mile applications like Meituan’s drone service, the limiting factors are more software‑based, such as the need to establish local laws and regulations.”

He stated that, at present, the main constraints on drones no longer lie in the technology itself. While many companies can already meet the technical requirements, the real bottleneck resides in a host of ancillary issues—ranging from regulatory approval frameworks and safety safeguards to third-party considerations in governance and management. Ultimately, drones must return to the ground. “When we assist certain regions in implementing automated drone inspections, we often need to build drone hangars. This is much like the rollout of EV charging stations: where can they be installed, and where can’t they? Who owns the charging infrastructure, who manages it, and who handles its maintenance? It’s precisely these downstream issues that deserve close attention as the next stage of drone‑related development unfolds.”

▍ The Tightening Noose Over Drones

At present, the hidden costs stemming from industry regulation have become a significant constraint on drone‑based logistics. Regulatory requirements demand that drones maintain high levels of safety and stability, which in turn raise technical and R&D challenges.

First, from the perspective of drone technology itself, although significant advances have been made, drones still face certain limitations in areas such as battery life, payload capacity, and stability, which in turn constrain their range of applications.

Secondly, safety remains the top priority, particularly in densely populated urban environments. At present, national regulations on drone safety are extremely stringent. Industry insiders believe that the requirements for drones… “Nearly equivalent to the safety standards of commercial airliners.” However, for today’s enterprises, achieving this standard would also entail substantial ongoing investments.

Jiang Bin also told reporters, “At present, several critical technological hurdles for drones still need to be overcome—for example, safety. Safety encompasses two aspects: first, the drone’s own controllability; second, uncontrollable external factors. How can a drone both maintain self‑control and guard against external sabotage? Essential preventive measures must be put in place well in advance.”

Logistics drones are like precision instruments soaring above urban skies. However, during outdoor operations, they can be affected by a variety of factors—natural conditions such as wind, rain, and lightning, as well as technical malfunctions and human error. Such unforeseen circumstances not only pose risks to the drone’s safety but may also jeopardize the safety of ground personnel and nearby structures.

According to Yuan Shuai, governments worldwide impose certain restrictions on drones regarding flight altitude, speed, size, and other parameters. The formulation of these regulations and policies has significantly impacted the commercial deployment of unmanned aerial vehicles.

From the perspectives of airway rights and safety, drone delivery must not only prevent damage to the ground but also avoid collisions in the air with other drones or obstacles.

For this very reason, during the Hangzhou Asian Games, nearly all hotels will ask guests whether they are carrying drones. This also underscores that, for a variety of security reasons, there remain many considerations to be addressed before drones can be widely permitted.

Angel investor and seasoned AI expert Guo Tao stated, “Unmanned aerial vehicles have overcome several critical technological bottlenecks, including autonomous flight, obstacle avoidance, positioning, and control. These advances enable UAVs to operate more safely and efficiently in complex environments.”

“In the field of propulsion, although piston and gas‑turbine engines currently dominate UAV power systems, China’s use of turbofan engines still lags significantly behind international standards, failing to fully meet UAV requirements for flight speed, endurance, and other key performance metrics. In terms of communications, China has made substantial progress in UAV data‑link technology; however, there remains a need to further enhance interoperability among different types of UAVs, between UAVs and manned aircraft, and across diverse user organizations, particularly as UAVs are deployed on a large scale and over wide areas,” Yuan Shuai added.

To enhance the safety and reliability of drones, it ultimately requires developing more efficient sensors and controllers, while also focusing on optimizing structural design, material selection, and manufacturing processes. For example, adopting more advanced navigation and control systems can improve a drone’s autonomous flight capabilities, and implementing higher‑efficiency batteries and power systems can extend its endurance and increase its speed.

Compared with conventional ground transportation, drones offer greater time efficiency; however, to date, large-scale deployment remains challenging. Jiang Bin argues that the purported high R&D costs may merely be a placebo for investors.

“I’ve never doubted the creativity of the Chinese people. If every one of our buildings had dedicated delivery slots or drone‑landing pads for takeout, would there still be any question about the coverage of logistics drones? As for the so‑called high R&D costs, that’s just a pretext—nothing more than a placebo. The real issue is whether you dare to take the risk, to go all in on R&D, and whether what you develop will actually work when it’s put into practice.”

When you reach a certain scale, certain factors may affect a small subset, but they cannot sway the broader picture. He said.

He believes that capital’s pursuit of returns on investment has undermined the original intent of research and development. “Without the involvement of capital, it simply won’t work; yet such involvement is both a blessing and a curse.”

Yuan Shuai believes that, “The realization of large-scale, commercial drone operations requires concerted efforts and advancements across multiple fronts, including technology, policy, regulations, and cost considerations. At present, drones have already seen some initial applications in logistics, agricultural pest control, and other sectors; however, achieving true scale and commercial viability will still necessitate addressing numerous technical and managerial challenges.” He emphasized, “Looking ahead, as technology continues to evolve and new use cases emerge, the prospects for large-scale, commercial drone deployment are promising—but it will take time to fully materialize.”

A responsible executive at Meituan’s drone division also stated that they firmly believe drone delivery will ultimately be rolled out on a large scale, as it is driven by user demand. Regarding cost considerations, the executive told reporters, “At this stage, we are not yet in a position to disclose specific cost details, but Meituan’s drone operations are steadily reducing costs. The pace of cost reductions is in line with our expectations.”

Jiang Bin also believes that, from a technical standpoint, large-scale deployment is already within reach. However, there are still many hurdles to overcome in other areas—much will depend on which cities, countries, or regions dare to take the lead.

To a certain extent, the R&D investment and scaling-up of logistics drones have turned into a classic chicken-or-egg dilemma.

▍ The policy sends out positive signals.

A cautious stance toward drone-based logistics is not unique to China; worldwide, regulations governing drone operations remain relatively stringent, making it difficult to achieve full liberalization. However, in recent years, policy flexibility has been gradually increasing.

In 2021, the State Council first proposed developing the low-altitude economy in the National Comprehensive Three-Dimensional Transportation Network Planning Outline. Subsequently, five provinces—Hunan, Jiangxi, Anhui, Sichuan, and Hainan—launched pilot programs, leading to the emergence of new application scenarios such as urban air mobility (UAM), advanced air mobility (AAM), and electric vertical takeoff and landing aircraft (EVTOL). Meanwhile, the integration of unmanned aerial vehicles with various industries has been accelerating.

In September 2022, the Ministry of Transport approved and released the recommended industry standard “Operational Requirements for Drone-Based Logistics Delivery.” In its section on safety requirements, the standard stipulates that carriers must develop emergency response plans and equip themselves with appropriate emergency facilities and equipment to address potential contingencies during operations, such as emergency landings, loss of control links, and adverse weather conditions.

The successive issuance of relevant documents helps guide drone‑based logistics enterprises to conduct compliant operations in drone‑assisted delivery and enhance the efficiency of transport coordination, marking a significant step forward in the development of China’s drone logistics sector.

On May 31, 2023, the State Council and the Central Military Commission promulgated the Provisional Regulations on the Administration of Unmanned Aircraft Flight, which will take effect on January 1, 2024. The official issuance of these Regulations marks the dawn of the drone era. The Regulations govern unmanned aircraft flight and related activities, laying out provisions to foster the healthy and orderly development of the unmanned aircraft industry while safeguarding aviation safety, public security, and national security.

At the beginning of this year, Meituan’s drone delivery service obtained both the “Approval Letter for Trial Operations of Specific‑Category Drones” and the “General Aviation Enterprise Operating License.” In recent years, JD.com has also secured written authorization to operate drones across the entire territory of Shaanxi Province. Meanwhile, SF Express has successively launched drone‑based delivery projects in Sichuan and other regions.

Relevant authorities have been consistently sending positive signals to steer the development of the drone industry. Yuan Shuai believes that, as the scope of drone applications continues to expand, more regulations and policies will emerge to govern their use and management. For instance, stricter airspace‑management rules and drone‑pilot certification requirements are likely to be introduced, providing a robust framework to ensure the orderly and standardized growth of the drone sector.

“As low‑altitude economies open up across the country and governments nationwide place increasing emphasis on this sector, all stakeholders are working in concert to drive its development—transforming logistics drones from a niche area that once attracted little attention, or from a situation where only a handful of companies forged ahead on their own, into a field now receiving strong government support, meeting pressing societal needs, and generating widespread public anticipation. What remains to be done is for local authorities to ensure that policies are effectively implemented,” said Jiang Bin.

▍ The Strategic Battleground of Future Logistics

Although drone delivery faces numerous challenges, the companies directly involved are far from backing down. A battle over drone-based cargo transport is underway. The “arms race” is underway. Drones will also redefine logistics efficiency.

At present, the top ten express delivery companies in the industry are all developing their own drones. On the one hand, according to data from the State Post Bureau, In 2022, China’s express delivery volume reached 110.58 billion parcels, up 2.1% year on year. The deployment of drones can help alleviate the last-mile delivery pressures faced by courier companies to a certain extent. Moreover, drones offer numerous advantages, including lower costs, high cost-effectiveness, zero risk of personnel injury, and convenient transportation. Against the backdrop of express delivery firms racing to capture consumer attention and gain a competitive edge, the substantial market potential and efficiency gains of drone technology are increasingly attracting major players to enter the field.

Essentially, China’s logistics sector—particularly the express delivery industry—can no longer sustain its reliance on labor-intensive operations; workforce reduction has become an inevitable trend. On one hand, digital technologies are being leveraged to cut down on manual labor, while on the other, alternative transportation solutions are gaining ground, with autonomous vehicles and drones playing key roles. As angel investor and seasoned AI expert Guo Tao puts it, “Further research, development, and deployment of drones will drive the logistics industry toward more efficient and intelligent upgrades. The rapid growth of the e‑commerce sector has undoubtedly been the primary engine behind recent advances in logistics technology. Led by e‑commerce giants, the push to automate logistics—featuring unmanned warehouses, autonomous vehicles, and drones—is accelerating its real‑world implementation, bolstered by supportive policies and substantial capital investment.”

Compared with autonomous vehicles, drones have tapped into the underutilized low-altitude airspace, thereby unlocking new growth opportunities. In recent years, China’s drone industry has posted an average annual growth rate exceeding… Twenty percent is emerging as a new growth driver for the national economy. Cross‑regional drone delivery is one of its key applications. Meanwhile, a challenge with autonomous vehicles lies in their potential to encroach on existing infrastructure and resources.

Moreover, as a key enabler of the low-altitude economy, the drone industry has gradually emerged as a leading sector. Supported by a range of favorable policies, China’s low-altitude economy has experienced rapid growth, with the number of low-altitude aircraft and related enterprises steadily increasing. According to statistics, as of… By the end of 2022, the number of drone‑operating enterprises nationwide had reached 15,000, with an annual output value of RMB 117 billion. The registered fleet comprised 950,000 drones, which had completed approximately 386 million flights in real time, accumulating a total flight time of about 16.689 million hours.

Yuan Shuai believes that, as urbanization accelerates, the demand for logistics and delivery within cities continues to grow. In the future, low‑altitude logistics could become an integral part of urban logistics systems, helping to address urban… The “last-mile” delivery challenge. At the same time, low‑altitude logistics and ground‑based logistics will see greater collaboration and synergistic development. For example, drones and human couriers could work together: drones handle last‑mile deliveries, while couriers take charge of longer‑distance transportation and final delivery.

Meituan’s drone team also stated that, “In the long term, low‑altitude logistics networks will become the new urban infrastructure of the next decade. Drone delivery not only helps alleviate capacity constraints during peak hours in high‑density cities but also integrates with an integrated air‑ground, three‑dimensional urban delivery network to deliver a more efficient customer experience. Moreover, it can effectively supplement capacity in scenarios where demand is rigid and supply falls short—such as cultural and tourism destinations, theme parks, mountainous, riverine, and coastal areas, as well as long‑distance deliveries—providing reliable fulfillment and last‑mile delivery services.”

Therefore, whether as an alternative solution to urban ground‑level traffic congestion or in coordinated last‑mile delivery with ground‑based logistics, drones will reshape the logistics ecosystem and open up new avenues for growth for logistics companies.

Therefore, as the range of drone applications expands and technological innovations emerge, new commercial operating models are increasingly taking shape, which in turn will accelerate the rapid growth of the drone industry. Meanwhile, with advances in technology and its maturation, drones are capable of performing an ever-wider array of tasks—ranging from aerial photography and logistics delivery to agricultural applications and search-and-rescue operations—thus continuously broadening their scope of use.

Yuan Shuai believes that drones will usher in a new wave of transformation in the logistics sector: first, advances in drone technology will make last-mile delivery faster and more precise.

Secondly, the widespread adoption of drone technology will drive the intelligent transformation of the logistics sector. As a key component of the Internet of Things, drones will integrate more deeply with IoT systems, enabling smart dispatching, automated delivery, and other advanced applications through data sharing and information exchange, thereby further elevating the industry’s level of intelligence.

Third, the continuous advancement of drone technology will create more business opportunities for the logistics industry. In the future, drones will not only be used in express delivery but will also give rise to a wider range of applications, such as air taxis, urban last-mile delivery, and aerial advertising, thereby expanding both the commercial prospects and market potential of the sector.

Finally, the ongoing advancement of drone technology will also drive sustainable development in the logistics sector. Against the backdrop of green logistics, the use of drones can reduce labor costs and lower carbon emissions associated with vehicle-based transportation, thereby contributing to the industry’s sustainability.

Over a century ago, inspired by birds’ ability to soar through the natural skies, humanity tirelessly pursued the invention of the modern airplane. Today, the use of drones in logistics resembles that early phase of aviation: though still in its infancy and fraught with challenges, it is poised to deliver a wholly new way of life to contemporary society. For the companies involved, a vast, future‑oriented market lies ahead, beckoning them forward. (TMTPost) APP)