Estimate the number of drones necessary to complete all deliveries for Amazon in NYC.
Google- David Mercy
Q. Estimate the number of drones necessary to complete all deliveries for Amazon in NYC.
Assumptions:
1. NYC Population = 8M
2. Orders per Delivery per Drone = 1
3. Average Delivery Distance (ADD) = 5km
4. Drone Battery Capacity (DBC) = 50km
5. Amazon Market Share = 30%
To calculate the number of drones required,
#No. of Drones Required = #Number of Daily Orders*ADD*2/DBC
Calculating the Number of Daily Orders:
NYC Population = 8M
Smart Phone Users = 0.8*8 = 6.4M
15+ Age Users = 0.70*6.4 = 4.6M
Amazon Users = 0.3 * 4.6 = 1.5M
User Segmentation – Orders Delivered in a day:
| Power Users (4orders per week) | 0.1 | 0.6M |
| Casual Users (3orders per week) | 0.1 | 0.45M |
| 1/week | 0.25 | 0.35 |
| 1/2 weeks | 0.25 | 0.175 |
| 1/month | 0.1 | 0.35 |
Orders per day = (0.6 + 0.45 + 0.35 + 0.175 + 0.35) /7 = 0.22M
#No. of Drones Required = #Number of Daily Orders*5km*2/DBC
Drones Required = (0.22*10/50) M = 0.04M = 40k Drones