The Business of Drones Beyond Delivering Packages

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Jan. 24 (Bloomberg) –- 3D Robotics Senior Research & Development Engineer Brandon Basso discusses the business of operating drones for personal use with Cory Johnson on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

These drones work.

First of all, you can't use drones for commercial enterprise in the u.s. right now.

Everyone who buys one of our products buys it under the commercial use exception.

If you are a regular individual who wants to take photos of your kids soccer game, you can buy one of these.

How big is your organization and what are you guys doing?

We are about 120 employees in san diego and tijuana where we manufacture.

We sell to consumers largely, but more and more to industry.

As long as you're operating as a personal entity and not profiting off of it, and you don't have a company based around selling services or aircraft, you can do it.

The data is not where the money is.

The money is an agricultural surveying and construction.

Are you delivering packages?

That is a good idea and something that might happen a few years from now.

Do you think it is a good idea?

It seems like a ridiculous idea.

I think if anybody is going to make it happen, just these us -- jeff bezos is going to make it happen.

If you hit my dog with your drown i am not going to order from you anymore.

That would be terrible.

What does this -- what is this kind of thing used for?

Is this what you sell right now?

This is our consumer product.

Again, if you want to take a picture of your kids soccer game or work with go pro -- i arm it by going like this.

It beeps like my roomba, but unlike my room but, it is going to get some air.

That looks totally not at all safe at all.

That is not flying over my kids soccer game.

That is flying up to emily in the studio right now.

Give me a sense of volume.

How many of these things have you sold?

This is not out for consumer use yet.

Some developers have it.

We expect to sell a lot of these because they are inexpensive, $750, and they are a lot of fun.

You are controlling this with two joysticks.

$750? i mean, i think what things are moving toward his you're going to operate this with your phone and your tablet.

I do it like this because this is how i am used to doing it and i get finer control and can point the camera exactly where i want.

It is a fully autonomous aircraft.

The way we want people to operate these things is to say go to hear on a map.

Push a button and go to hear.

These will eventually be used for checking oil and gas pipelines and things like that, not delivering coffee.

Waiters and waitresses do a good job of that.

Delivery makes sense if you have a high-value package that has to get to a place where cars can go.

If you want to deliver medical supplies in australia against -- across great distances, one of these makes sense.

It has regulatory hurdles and technological.

You have a phd, which means you have been to school a lot.

It are there barriers to entry and is this really technological?

Are there going to be 50 companies offering this so the margins won't be that stable because they will be everywhere or are there a lot of barriers to entry?

What's hard is to make it work really well and what's hard is to say go to this point and take a picture.

So there could be a lot of computers, but ease of use and grace in the software is hard.

Exactly.

This is a flying camera.

The people who buy this want to take a picture.

They do not want to fly, necessarily.

They want to have an easy experience.

What do you think is the most important change you would like to see in terms of legislation or rules to allow drones to operate more in the u.s.? it makes sense to me that you want to regulate aircraft that are going to operate in manned airspace.

He could possibly be up with -- they could possibly be up with regular aircraft.

But i think they should look at deregulating small business so that you could do crop surveys and things like that.

I am going to fly this thing up behind you now.

Look out.

Here it comes, emily.

I see it.

I see it.

Hello, drown.

-- drone.

Thank you, guys.

Coming up right here on "bloomberg west," an original

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

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