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Mercedes just invested in a drone company to help transform the way packages are delivered

Published by Business Insider on Wed, 07 Sep 2016


Mercedes-Benz is betting that drones are the future of package delivery. The company announced on Wednesday a "multi-million dollar" investment in drone startup Matternet, which has developed a completely autonomous dronethe Matternet M2that can travel up to 12 miles on a charge.As part of the partnership, Mercedes unveiled a concept van project, dubbed the Vision Van, that shows how a Matternet-powered automated delivery chain couldwork.The van, which has the form factor of a Sprinter, features a mechanical shelving system that loads packages.The vehicleknows where each package is on the shelf and where it's going. Once the driver is on the road, they get a notification when they need to stop for a package delivery.The van's shelving system pushes the package into a drone (locked in a landing station)onthe roof ofthe van, and the drone then delivers it a docking station at the final location."Theother scenario is that you as the customer go on [something like the]Amazon website, see the option to have something delivered in an hour, and the system knows a Mercedez Benz van is nearby. The drone could depart from the Amazon delivery center, go to a van, and the driver hands the packageoff to you. This doesn't require any infrastructure," says Andreas Raptopoulous, the founder and CEO of Matternet.One way to do this which Mercedes is callingVans and Dronesinvolves a beacon installed on the van roof that allows Matternet's drone to make an ultra-precise landing.WhileMatternet isn't currently working with Amazon,the scenario could apply to any large company that makes deliveries, he says.Matternet's M2 drone, also unveiled on Wednesday, can load and drop off payloads of up to 4.4 pounds with no human interaction.The automotive company hasn't yet announced a timeline for drone delivery technology to be commercialized, but it could be several months or even years before testing is complete, according to Raptopoulous. Still, Mercedes is being "quite aggressive about pushing this into the marketplace," he says. "There are different systems we'll try to figure out what should be productized, but they are moving at a pace where they know the market is there," he says.SEE ALSO:Mercedes just unleashed a new SUV to take on BMWJoin the conversation about this storyNOW WATCH: Mercedes-Maybach rivals Tesla with a new jaw-dropping concept car
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