Amazon's Self-driving vehicles

Published Apr 30, 2017

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Washington - Self-driving vehicles have yet to hit the road in a major

way, but Amazon already is exploring the technology's potential to change how

your packages are delivered.

Amazon is the nation's largest online retailer, and its

decisions not only turn heads but influence the entire retail and shipping

industries, analysts say. That means any foray into the self-driving arena -whether

as a developer or customer could have a significant effect on the technology's

adoption.

Amazon has assigned a dozen employees to determine how it

can use the technology as part of its business, the Wall Street Journal

reported Monday. It's unclear what shape Amazon's efforts will take or how far

along they might be, although the company has no plans to create its own

vehicles, according to the report.

Read also:  Self-driving cars are getting better at it

Nevertheless, the Amazon group offers an early indication

that big companies are preparing for the technology's impact.

Transportation experts anticipate that self-driving cars

will fundamentally alter the way people get around and the way company’s ship

goods, changes that stand to disrupt entire industries and leave millions of

professional drivers without jobs. The forthcoming shift has attracted the

money and attention of the biggest names in the technology and automotive

industries, including Apple, Uber, Google, Ford, General Motors and Tesla,

among others.

In particular, the technology could make long-haul shipping

cheaper and faster because, unlike human drivers, machines do not command a

salary or require down time. That would be important to Amazon, whose shipping

costs continue to climb as the company sells more products and ships them

faster, according to its annual report. Amazon even invested in its own fleet

of trucks in December 2015 to give the company greater control over

distribution.If Amazon adopts self-driving technology, it may push others

to do the same.

"When Amazon sneezes, everyone wakes up," said

Satish Jindel, president of SJ Consulting Group, a transportation and logistics

advisory firm.

The company said it shipped more than 1 billion items during

the 2016 holiday season.

 An Amazon spokeswoman declined a request for an interview,

citing a "long-standing practice of not commenting on rumours and

speculation." The company's chief executive, Jeffrey P. Bezos, owns The

Washington Post.

Amazon has become something of a pioneer in home delivery,

in part by setting the standard for how quickly purchases arrive on your

doorstep. The company has begun using aerial drones in an effort to deliver goods

more quickly, completing its first successful flight to a customer in the United Kingdom

in December. Like self-driving vehicles, drones will need to overcome

regulatory hurdles before they're widely deployed.

In its warehouses, Amazon has used thousands of robots that

pull items from shelves and pack them. Last summer, Deutsche Bank analysts

found the robots reduced the time to fulfil an order from more than an hour to

15 minutes, according to business news site Quartz. They also saved Amazon

about $22 million per warehouse. Amazon acquired Kiva, the company that makes

the robots, in 2012 for $775 million.

 WASHINGTON POST 

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