Why Your Packages Could Soon Soar to Your Door, and How to Possibly Profit From the Trend

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Every day, tens of millions of packages are delivered. While many of the processes that move packages between warehouses and sorting centers have been automated, humans often handle the last, most visible mile of delivery, according to a report for Built In by Jacob Biba on January 15.

Drone delivery involves using drones to complete deliveries instead of human drivers. After receiving customer orders, companies load products onto drones that fly autonomously or are controlled remotely to deliver packages to customers' homes or designated pickup locations, the article said.

Startups and major corporations like Amazon and Walmart are testing autonomous drones — unmanned aerial vehicles — demonstrating that drone delivery is a safe and efficient alternative. These efforts are already scaling, with 800,000 commercial drone deliveries reported in 2023. By 2035, that number is projected to reach 1.5 million deliveries, according to McKinsey, Biba wrote. With some customers willing to pay a premium for the service, drones may soon replace the cars, trucks, and humans traditionally associated with package delivery.

According to a report on Amazon News by Tyler Greenawalt on December 11, 2024, Amazon's goal is to deliver 500 million packages by drone globally by the end of the decade.

The global drone delivery service market was valued at US$3.47 billion in 2025 and is expected to grow from $US5.06 billion in 2026 to US$20.98 billion by 2034, with a compound annual growth rate (CAGR) of 19.45%, according to Fortune Business Insights.

Drone delivery services involve using Unmanned Aerial Vehicles (UAVs), commonly known as drones, to transport goods and packages from one location to a customer's specified delivery address, the research firm noted. This technology aims to enhance logistics by providing cost-effective, efficient, and faster delivery solutions, particularly for last-mile deliveries. The market is experiencing significant growth due to several factors, including the increasing demand for quicker delivery driven by the rise of e-commerce and the need for efficient last-mile solutions.

How It Works

Drone delivery begins when a customer places an order. Once the order is received, processed, and packaged, it is loaded onto the drone, the Built In article reported. The drone then travels to its drop-off point, lowers the package to the ground, and returns to its home base.

For example, on its website, Amazon reports that its drone service can transport items weighing up to five pounds and is only available during daylight hours and favorable weather conditions.

"The drone will fly to the designated delivery location, check for obstacles and objects, descend to your delivery point, and release the package," Amazon said.

Customers don't need to be home for the delivery, but should "ensure that people, pets, vehicles, and objects taller than 5 feet (including plants) are at least 10 feet away from the selected delivery point."

Amazon said if the package selected for drone delivery can't be delivered that way, it will attempt to deliver your packages via traditional ground delivery.

When placing your first drone delivery order, you'll select from up to three available delivery points for your property during checkout, the retail giant said.

"We provide images of possible delivery areas at the selected address to make it easy to visualize the location where the drone will deliver your packages and ensure it's free of any obstacles," the page noted.

Major Growth Expected in Market

The delivery drones market was valued at US$1.47 billion in 2026 and is expected to grow to US$6.74 billion by 2031, with a compound annual growth rate (CAGR) of 35.69% over the forecast period, Mordor Intelligence said. The rapid advancement in beyond-visual-line-of-sight regulations, the increasing demand for same-day delivery, and innovations in hybrid VTOL (Vertical Take-Off and Landing) technology are driving adoption across retail, healthcare, and industrial sectors.

"Rotary-wing craft currently dominate dense urban routes, yet long-range fixed-wing systems are scaling in rural networks where ground logistics remain inefficient," Mordor noted. "Capital inflows from retailers, express parcel incumbents, and venture investors are shrinking experimentation cycles and prompting operators to deploy in multiple cities. At the same time, airspace-integration bottlenecks and payload limits concentrate expansion among well-capitalized firms that can absorb certification costs."

Advancements in drone technology, like improved autonomous flight systems and extended battery life, are also contributing to market expansion, Fortune Business Insights said. Additionally, the COVID-19 pandemic accelerated the adoption of drone delivery as a contactless and efficient method for transporting goods.

"While initial investments in drone technology can be higher, drone delivery is effective, efficient, and cost-saving in the long run as compared to traditional delivery methods," the report noted. "Reduced fuel, labor, and operational costs contribute to overall cost-effectiveness. Apart from e-commerce and retail, these drones are used significantly for various applications, including industrial inspections, medical deliveries, and emergency response."

The versatility of drone technology is driving its adoption across multiple sectors. Governments worldwide are recognizing the potential of drone delivery and are developing supportive regulations, creating a favorable regulatory environment that facilitates market growth.

Key industry players such as Amazon, EHang Holdings, and Zipline are contributing to the strong growth of the market. They are heavily investing in technological advancements and aiming for broader and more sustainable reach for drone delivery and transportation, thereby driving market expansion.

Amazon.com Inc.

The world's largest online retailer by market cap, according to Investopedia, Amazon.com Inc. (AMZN:NASDAQ) is a prominent American multinational technology company involved in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.

Founded by Jeff Bezos in 1994 in Bellevue, Washington, the company initially began as an online bookstore but gradually expanded its offerings to encompass a vast array of product categories, earning the nickname "The Everything Store." Amazon is recognized as a Big Tech company and is renowned as the world's largest online shopping retailer and marketplace, offering a diverse range of products and services, including books, electronics, pharmaceuticals, car parts, video games, dining, jewelry, food, music, and sports equipment.

The company operates numerous subsidiaries, such as Amazon Web Services (AWS) for cloud computing; Zoox, a self-driving car division; Kuiper Systems, a satellite Internet provider; and Amazon Lab126, a computer hardware R&D provider. Other subsidiaries include Ring, Twitch, IMDb, and Whole Foods Market.

The company is known for disrupting industries through technological innovation and aggressive reinvestment of profits into capital expenditures.

In 2021, Amazon surpassed Walmart as the world's largest retailer outside of China, largely due to its paid subscription service, Amazon Prime, which boasts 200 million subscribers globally. It is the second-largest private employer in the United States and the second-largest company in the world and the U.S. by revenue as of 2024, following Walmart. As of October 2024, Amazon ranks as the 12th-most visited website globally, with 84% of its traffic originating from the United States.

According to a December 2025 report for KSAT.com by Madalynn Lambert, the company's new Prime Air drone service is now operational in San Antonio, Texas, with packages being delivered by air. Armandina Guzman-Gamez and her family were in their backyard in Kirby on Sunday when they witnessed a neighbor receive a package delivered by a drone. "It sounded like an airplane," Guzman-Gamez remarked, according to the report. "And sure enough, it started coming down, and it just dropped the package. We were like: That's awesome."

Prime Air drones are capable of delivering packages weighing up to five pounds within a 7- to 8-mile radius of their facility. Some residents have expressed concerns about the drones flying over their properties when the delivery is not intended for them. "In some ways it's great," Crystal Gonzalez commented, according to KSAT. "It uses less traffic (and) gas, but at the same time, it's kind of like an invasion of privacy because who is really piloting it?"

For Amazon Prime members, the drone delivery costs an extra US$4.99, the article said. Non-Amazon Prime members need to pay US$9.99 for the service.

Just this week, despite experiencing significant growth, Amazon announced it is laying off 16,000 corporate employees as part of an effort to streamline operations and allocate more resources towards investments in artificial intelligence, according to a report by Karen Weise for The New York Times on January 28.

These layoffs were anticipated across Amazon's corporate workforce since late October, when the company initially let go of 14,000 corporate employees, the report said. At that time, reports from The New York Times and other outlets indicated that another round of layoffs was expected in January, following the holiday shopping season.

While the company has not ruled out the possibility of further job cuts, it stated that it does not intend to establish a regular pattern of layoffs every few months. "Just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate," Beth Galetti, Amazon's senior vice president of people experience and technology, mentioned in a blog post. "That's never been more important than it is today in a world that's changing faster than ever."

According to the website Stock Analysis, among 45 analysts, the average rating for AMZN stock is 'Strong Buy,'" the site said. "The 12-month stock price target is US$286.44, which is an increase of 17.77% from the latest price," the site said.

The performance of AMZN stock over the past few years has been quite variable, according to a research update from Trefis on November 19, 2025. The stock saw a return of 2% in 2021, a decline of 50% in 2022, a significant increase of 81% in 2023, and a 44% rise in 2024. In contrast, the S&P 500 had returns of 27% in 2021, a decrease of 19% in 2022, a 24% increase in 2023, and a 23% rise in 2024. This shows that AMZN underperformed the S&P 500 in 2021 and 2022.

In the third quarter of 2025, Amazon reported total revenues of US$180 billion, Trefis said, marking a 13% year-over-year increase. This growth was driven by an 11% rise in North American sales, a 20% increase in the AWS segment, and a 14% boost in International sales. Amazon's earnings per share stood at US$1.95 in Q3, up from US$1.43 in the same quarter the previous year.

For the full fiscal year 2024, Amazon's net sales rose by 11% to US$638 billion, compared to US$575 billion in the prior year, Trefis said. Additionally, operating income increased to US$68.6 billion in 2024, up from US$36.9 billion in 2023.

The Trefis target price for the stock is US$294 per share, compared to US$243.01 at the time this article was written, a 21% increase.

¹About 9.04% of the company is owned by insiders and management, and 66.6% by institutions. Top shareholders include Jeffrey P. Bezos with 9.01%, The Vanguard Group Inc. with 7.91%, BlackRock Institutional Trust Co. with 4.16%, State Street Investment Management with 3.57%, and Fidelity Management and Research Co. with 2.88%.

Its market cap is US$2.62 trillion with 10.7 billion shares outstanding. It trades in a 52-week range of US$161.38 and US$258.60.

EHang Holdings Ltd.

According to its website, EHang Holdings Ltd. (EH:NASDAQ) is a leading global platform for advanced air mobility (AAM) technology, "committed to making safe, autonomous, and eco-friendly air mobility accessible to everyone."

The company designs and produces a diverse range of pilotless electric vertical take-off and landing (eVTOL) aircraft for various applications, including aerial tourism, urban transportation, intercity travel, logistics, and emergency firefighting.

Its flagship model, the EH216-S, has received the world's first type certificate, production certificate, and standard airworthiness certificate for pilotless eVTOL from the Civil Aviation Administration of China. It is now commercially operated under the country's first Air Operator Certificates for human-carrying eVTOL services. Additionally, EHang's VT35 extends its capabilities into long-range and intercity applications, aiding in the creation of a multi-tiered low-altitude mobility network.

"By integrating advanced autonomous technologies with scalable operational infrastructure, EHang is redefining how people and goods move — across cities, regions, and natural barriers — shaping the future of air mobility," according to the company.

EHang also provides fully autonomous, urban drone delivery services using its Falcon UAV and EH216L cargo models, partnering with DHL-Sinotrans to reduce last-mile delivery times from 40 minutes to under 8 minutes in China. These intelligent systems feature automated loading/unloading via specialized cabinets and can carry up to 5 kilograms, focusing on efficiency and cost savings. 

The company is advancing its global strategy through strategic partnerships and regulatory approvals, according to a January 29 report by Michael Hartmann for Primary Ignition. Its recent initiatives in Europe and Asia aim to expedite the commercial rollout of its passenger-carrying drones, despite its stock facing challenges following a disappointing earnings report.

In a notable leadership change, EHang appointed Shuai Feng as its new Chief Technology Officer on January 16. This move underscores the company's commitment to innovation and the commercialization of its eVTOL aircraft fleet. However, the market has been slow to recognize these operational advancements. EHang shares are currently trading at US$13.21, just above their 52-week low, reflecting a decline of about 21% over the past year, Hartmann wrote. The stock is trading nearly 50% below its annual peak, with investor sentiment affected mainly by weaker-than-expected revenue figures for the third quarter of 2025.

Market experts are divided in their opinions on EHang's future, Hartmann said. The consensus rating among analysts is currently "Moderate Buy," with an average price target of US$23.48 per share. In contrast, investment bank JPMorgan took a more cautious approach in late November, downgrading the stock to "Neutral" and significantly lowering its price target to US$13.00.

"The coming months will be critical for EHang," Hartmann wrote. "The success of its validation flights in Madrid and Hong Kong will be closely watched to determine if they can generate sufficient operational traction to improve the company's fundamental valuation and convert its technological leadership into sustained share price gains."

According to Stock Analysis, among four analysts that cover the company, the average rating for EH stock is "Strong Buy." The 12-month stock price target is US$21.85, which is an increase of 67.43% from the latest price.

¹Less than 1% of the company is owned by insiders and management, and about 39% is held by institutions.

Top shareholders include Axim Planning & Wealth with 8.34%, The Vanguard Group Inc. with 3.85%, Susquehanna International Group LLP with 3.38%, Fidelity International with 2.6%, and Kadensa Capital Ltd. with 2.01%.

The company's market cap is US$950.92 million with 71.98 million shares outstanding. It trades in a 52-week range of US$12.71 to US$29.76.

Zipline

According to Access IPOs, American robotics company Zipline is a privately held startup owned by "founders, employees, and a few dozen venture capital firms." 

A January 25 piece by Miquel Ros for AeroTime noted that the company is "by some metrics the world's largest drone delivery firm."

Zipline exceeded two million commercial deliveries and secured over US$600 million in funding to expand its drone delivery operations to Houston and Phoenix in early 2026, with plans to reach additional urban centers later in the year, Hazel King reported for Parcel and Postal Technology International on January 28. Zipline reported a 15% week-over-week growth in the U.S. over the past seven months, underscoring the rising demand for autonomous on-demand drone delivery in the country.

"Autonomous logistics has been maturing for more than a decade, and the last year has made it unmistakably clear that when deliveries are faster, cleaner, safer, and cheaper, demand isn't just high, it grows exponentially," said Keller Cliffton, CEO and co-founder of Zipline in the article. "In 2026, autonomous logistics will become an everyday staple for people across several states in the U.S. That transformation starts with Houston and my hometown of Phoenix, which we'll begin serving early this year, and then expand to even more places across the country throughout the year."

The US$600 million funding round included contributions from both existing and new investors, such as Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global. Zipline plans to use these funds to accelerate its expansion into at least four new states this year.

"In the next 5-10 years, deliveries made by autonomous aircraft will become standard. That revolution is going to be led by Zipline," said Antonio Gracias, founder, CEO, and chief investment officer of Valor Equity Partners, King reported. "There's no better team, company, and product positioned to lead the charge than Zipline."

To date, Zipline's zero-emission aircraft have flown over 125 million autonomous commercial miles, delivering more than 20 million items, the article said.

"Zipline is a pioneer in autonomous logistics by air, providing last mile delivery services by drone in several US metropolitan areas, as well as internationally," Ros wrote in the AeroTime piece. "In countries like Rwanda, for example, Zipline has been operating for years a service to deliver blood and medical supplies to hospitals. In the U.S., the scope of Zipline's operation is broader, and in addition to medical supplies, it also includes the nearly immediate delivery of food and shopping orders for consumers."

The article also noted, "The median delivery time for an order in the U.S. is about three minutes, according to the company."

Reuters writers Pragyan Kalita and Pritam Biswas on January 20 said the latest fundraising raised Zipline's value to US$7.6 billion.

Venture funding in the United States has shown resilience, with artificial intelligence continuing to attract the largest portion of capital, Kalita and Biswas noted. Meanwhile, increasing interest in hardware startups has provided a consistent boost to overall funding levels.

"Automated logistics has been maturing for more than a decade, and the last year ‍has made it unmistakably clear that when deliveries are faster, cleaner, safer, and cheaper, demand isn't just high, it grows exponentially," CEO and founder Cliffton said, according to Reuters.