Amazon (AMZN, Financial) is working on smart glasses that provide turn-by-turn navigation for their delivery drivers. This innovation aims to reduce the time it takes for orders to reach customers. While the company is focused on creating a safer and more efficient delivery experience, no further details about the product's roadmap were disclosed.
According to sources, if successful, these glasses will feature an embedded small screen offering navigation guidance throughout the route and at each stop. This guidance could include directional suggestions such as left or right turns to avoid obstacles, thus saving valuable seconds per delivery. Given the vast number of packages delivered daily, even a few seconds saved per delivery can have significant impacts. By eliminating the need for handheld GPS devices, drivers could potentially handle more packages.
This project underscores Amazon's efforts to reduce delivery costs per package and sustain profit margins amid increasing competition from Walmart (WMT), which has been ramping up its e-commerce and lowering prices. Walmart is also incentivizing independent delivery drivers with new bonuses to complete online orders during the holiday season.
However, the development of Amazon's delivery glasses may face challenges, including potential delays due to financial or technical issues. It could take years to perfect this technology. Notably, Amazon has been investing in its delivery network, including its own airline, long-haul trucking, and vast suburban warehouses, to reduce dependence on carriers like UPS and FedEx, ultimately speeding up deliveries and cutting costs.
Amazon's transportation costs increased by 8% to $23.5 billion in the third quarter. The "last mile" of delivery is particularly costly and complex, requiring navigation through communities, more couriers, and additional fuel. It's estimated that half of a product's delivery cost is incurred during this final stage.
The smart glasses being developed are based on Amazon's Echo Frames, which allow users to listen to audio and utilize voice commands through Amazon's virtual assistant, Alexa. Dubbed internally as "Amelia," these delivery glasses will rely on a small display in one lens and can photograph delivery packages as proof for customers.
The technology is still under development, with challenges like creating a lightweight, eight-hour battery requiring attention. Additionally, it might take years to gather complete data for each house, sidewalk, street, curb, and driveway. Amazon delivery drivers visit over 100 customers per shift, and increased efficiency could lead to more deliveries per driver.
Amazon might face further hurdles, such as convincing thousands of its drivers to adopt these glasses, which could cause discomfort or distraction, or may not be stylish. Furthermore, some drivers already wear prescription glasses.
