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April 11, 2020

Drone delivery doubled in the last two weeks

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One of Alphabet's moonshot projects is an autonomous delivery drone service called Wing. As far as I can tell, they're only company offering this kind of service to the general public in North America -- though they are only operating in a few test locations in Virginia, Finland, and Australia.

Specifically:

  • Canberra, Australia

  • Logan, Australia

  • Helsinki, Finland

  • Christiansburg, United States

Not surprisingly, demand for Wing deliveries has surged during this pandemic. According to the Verge, the company made over 1,000 deliveries in the past two weeks, which represents a doubling of deliveries in the US and Australia. The most popular items seem to be essentials like toilet paper and coffee.

This is perhaps a good example of the argument that COVID-19 isn't going to change things per se, it will simply accelerate the adoption of things that were already in the process of happening. I was and am of the opinion that drones will become an integral part of delivery logistics. (Full disclosure: I own a bit of Alphabet and Drone Delivery Canada stock.)

There is still a lot that will need to happen. Alphabet/Wing is also working on an autonomous traffic management platform, because you obviously need something robust if you're going to scale this up. How you make this work in dense urban environments is also a whole other kettle of fish, though already people are starting to reconsider how rooftops are used.

For more on Wing, click here.

Image: Wing

August 11, 2015

Making alpha-bets

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On Monday, Google broke the internet when it announced that it was reorganizing itself into a holding company structure called Alphabet.

That means that Google, Inc. will now become a subsidiary, along with many other companies, of Alphabet Inc. and all shares of Google will automatically convert into the same number of shares in Alphabet.

This is huge, but also something that was likely inevitable given the passions of the founders. Apparently Larry Page has been thinking about this move for years.

As it stands pre-Alphabet, Google (with its main internet products) is basically a cash cow funding all of Google’s other experiments. But this muddied the waters and made it difficult for investors to clearly see how much the main internet products were making and how much the founders were spending on self-driving cars, delivery drones (Project Wing), and other new ideas.

Now everything will be separate.

But what’s really exciting about the reorganization is that it sets the stage for Alphabet/Google – which is arguably already one of the most important companies in the world – to become even more impactful in a wide variety of industries and disciplines, some/many not traditionally associated with tech. Each wholly owned subsidiary will have their own CEO and the founders rightly believe, I think, that this overall structure will afford them more “management scale.”

Within Google will remain search, advertising, maps, YouTube, and the Android mobile operating system. But already Alphabet is the parent company of the following other businesses:

  • Calico, an anti-aging life extension company

  • Sidewalk, a smart cities company whose mission is to improve life in cities

  • Nest, an “internet of things” company that makes connected devices for your home

  • Fiber, a company that offers super fast internet

  • Google Ventures (venture capital) & Google Capital (private equity)

  • Google X, which is the lab developing self-driving cars and delivery drones (Project Wing)

If you can’t tell, I’m bullish on all of this. The approach really resonates with me and I can’t wait to see what Alphabet becomes. If you’d like to read the full and official blog post announcement, click here. 

Cheers to trying new things and making big bets.

Brandon Donnelly

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Brandon Donnelly

Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.

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