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Alibaba Beats Amazon with Drone Delivery Test

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Alibaba is testing drones to deliver ginger tea ordered from its Taobao e-commerce website, the company confirmed on Wednesday, as it steps up efforts to compete with American rival Amazon. The Chinese internet group has teamed up with delivery company Shanghai YTO Express Logistics to launch a drone delivery trial in Beijing, Shanghai and Guangzhou on Wednesday, according to a blog post on Alibaba's e-commerce news website Alizila. The move follows Amazon's announcement in 2013 that it would be testing drones to deliver packages to customers in 30 minutes or less, although the program, dubbed "Prime Air," has faced regulatory hurdles in the U.S. Alibaba claims that its 49-renimbi ($7.84) ginger tea packets will be delivered within the hour. Some 450 customers will take part in what the Chinese e-commerce giant described as a "one-off" test, in which tea ordered on Taobao between February 4-6 will be delivered to particular regions by drone on a first-come-first-serve basis. The drones won't land directly on a consumer's front door, but will instead land outside a residential buildings to be collected by human couriers who take over the final part of the delivery.

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— Arjun Kharpal, CNBC

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