Over the past year or so, one of the big stories about Amazon has revolved around their Prime Air service. The company has spent vast amounts of money on developing drones, training pilots, and testing efficiency in an effort to start a drone delivery option. However, the plan recently got knocked down by regulation. Nonetheless, big moves from AIG are breathing new life in the corporate drone concept. So, Amazon's dreams of Prime Air may actually come true. Today we'll talk about how Amazon's Prime Air got knocked down, how AIG may be innovating change, and what it could mean for Amazon in the future.
What Happened To Prime Air In The First Place?
6 months ago, Amazon Prime Air was all the rage! Everyone was talking about how there were going to be Amazon drones flying everywhere. Then, all of the sudden, all the chatter stopped as the legal hammer came down on the program. The Federal Aviation Administration released new guidelines for the commercial use of drones that didn't coincide with Amazon's plans.
According to the Federal Aviation Administration, corporations are allowed to use drones for commercial purposes. However, they can't be out of the line of sight of the operator or flown over crowds of people. Unfortunately, Amazon would have operators working inside of a building; making it impossible to keep the drones in the line of sight; and to deliver goods, they would need to fly over crowded areas here and there.
How AIG Is Changing The Game
The massive insurance company AIG recently announced that the Federal Aviation Administration has given them permission to use drones for their commercial purposes. However, the way AIG intends to use the drones is directly against regulation as the drones would be flown over crowded roadways and manned in house. So, unless the FAA plans on looking biased toward one company over another, they're going to have to give Amazon the same permission.
What This Means For Amazon
This is a big step in the right direction for Amazon. The reality is that Amazon has pumped a ton of money into Prime Air. If something didn't change with regulation, that would be money lost. However, because of the permissions granted to AIG by the FAA, the light is shining at the end of the tunnel. As I mentioned above, it's important that regulations work the same for everyone. If that wasn't the case, this wouldn't be the great United States it's become. With that said, if AIG can get the permission, so can Amazon. So, it's only a matter of time before consumers that live close to Amazon distribution centers start to see little yellow and black drones flying around.
What This Means For Binary Options Traders
As a binary options trader, it's your job to spot and earn from trends. While the release of Amazon Prime Air is still likely pretty far off, it's definitely going to create a trend in the market. With that said, this is definitely a story worth tracking the developments on and making sure that you're aware when big changes happen as they are likely to move the market!