Amazon develops smart glasses for drivers aimed at reducing delivery time

According to the Zhitong Finance APP, five informed sources said that Amazon (AMZN.US) is developing smart glasses for its delivery drivers, providing turn-by-turn navigation suggestions along the route and at each stop, aiming to reduce the time it takes for orders to reach customers' homes.

An Amazon spokesperson stated in a statement: "We are constantly innovating to create a safer and better delivery experience for drivers. Beyond that, we will not comment on the product roadmap."

Informed sources told Reuters that if successful, these glasses will provide drivers with turn-by-turn navigation on an embedded small screen along the route and at each stop.

By providing left or right directions to navigate around obstacles such as doors and to exit elevators, such guidance can save valuable seconds on each delivery.

With millions of packages to deliver every day, every second counts. These glasses will also allow drivers to stop using handheld GPS devices, enabling them to deliver more packages.

The project highlights the online seller's efforts to reduce the delivery cost per package and support profit margins in the face of increasing competition from Walmart (WMT.US). Walmart has ramped up its e-commerce efforts and lowered prices. Walmart told Reuters that the company will pay new incentives to independent delivery drivers to encourage them to complete online orders during the holiday season.

Informed sources warned that if Amazon's delivery glasses do not work as intended, or if they are shelved or indefinitely delayed for financial or other reasons, it could take years to refine them.

Amazon has been working for years to develop an internal delivery network, including its own airline, long-haul trucking, and a vast suburban warehouse system. By doing so, it hopes to speed up delivery and cut costs by reducing reliance on courier companies like UPS and FedEx.

Amazon's shipping costs rose 8% in the third quarter, reaching $23.5 billion.

The Last Mile Challenge

The "last mile" of delivery is both expensive and complex, as it requires navigating between communities, deploying more couriers, and using more fuel. It is estimated that half of the cost of delivering a product to a customer's doorstep comes from the last mile.

Informed sources said that the delivery glasses being developed are based on Amazon's Echo Frames smart glasses, which allow users to listen to audio and use voice commands with Amazon's virtual assistant, Alexa.

Sources said that the delivery glasses, internally codenamed Amelia, will rely on a small display on one of the lenses and can take photos of delivery packages as proof for customers. In September of this year, Amazon released a chatbot unrelated to this project, also called Amelia, for third-party sellers.

However, the technology is still in the development stage, and Amazon is facing difficulties in manufacturing a battery that can operate continuously for eight hours while being light enough to wear all day without causing fatigue, informed sources said. Additionally, they noted that collecting complete data on every house, sidewalk, street, curb, and driveway could take years Amazon stated that delivery drivers need to visit over 100 customers per shift. With increased efficiency, Amazon can require drivers to deliver more packages and visit more households.

According to informed sources, Amazon may also face other obstacles, including persuading its thousands of drivers to use these glasses, which may be uncomfortable, distracting, or unattractive, not to mention that some drivers already wear glasses