Google Takes Amazon Rivalry to the Skies

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Aug. 29 (Bloomberg) -- Google is taking its rivalry against Amazon to the skies. The search giant’s X laboratory division is developing drones that can handle deliveries, a move that would be in direct competition with the e-commerce company that is testing its own shipment service using self-flying machines. Brian Womack has more on "Street Smart." (Source: Bloomberg)

What is the idea behind this?

If you read the documents.

So, that would have predated amazon.

It is just amazon and google that are doing this.

It is really fascinating technology.

In some ways, i am not that shocked that google is somewhat at that campus.

Can they taken them on?

There is a lot of aspects.

There is to started first.

There is a technological aspect to it.

There is the ultimate plans.

Google is doing same day delivery.

Certainly, that kind of delivery system is something that interested them and google is really taking on amazon right now, partnering with retailers to do this kind of delivery.

Let's talk about what this could look like.

It just sounds really pretty cool.

The idea is that you press a button and that package would be delivered via a drone that would have a specific route.

And they have said this is not just about a role thing.

The rural context makes a lot of sense.

You imagine the ups truck driving from its depot or whatever to go 20 miles to the farm where he has to drop off a single package.

It is safe and that kind of environment to fly a drone and deliver something.

Is this a bit they want to be in or is this a matter of trying to show some technological leadership to try to look like a cutting-edge company?

It seems like a waste, who wants to do that?

Who wants to invest the resources, money, energy just to make yourself look good.

I would have to say there is some genuine motivation behind this because there is capital behind this.

One would assume the allocations of capital should be in the right places.

Probably a rounding error.

Lord knows i spent great fortunes to make myself look better.

All of that makeup.

Brian, walk me through the logistics.

If you have a heavy package, it will not be will to carry that, would it?

They specifically said, it is about five pounds or less that they will do.

These are not huge massive planes.

These are small vehicles.

I think that you can see this technology progressing in different ways.

Different kinds of technology.

How it drops off the package.

There are a lot of different things that will have to be settled.

This is early days.

I think the field is wide open.

Do you think that we might see a real business here?

How fedex should feel about this, is this a threat?

Is hard to imagine that they are sweating about this.

One of the reasons that the spirits were not done in mountain view or the u.s., they had to go are surely a to do this because there are no ground rules.

We are a long way away.

People get excited about this.

What is it about drones that just its people really interested?

They're just cool little planes.

They have been around for long time and now we have them actually doing cool things.

I think that amazon, this is their core business of trying to deliver stuff and get stuff to consumers.

I think that if it is google or amazon, amazon has a lot riding on this.

This gets right at their core business.

Google, they are selling ads.

Do you worry that this is all about appearances.

They are doing a lot of things.

I am saying they're just having fun for the sake of fun.

I think they are doing some serious things.

Amazon, this is right into their core business.

People love this stuff.

I bet this will do really well.

Drones just somehow do, for

This text has been automatically generated. It may not be 100% accurate.

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