Amazon's Drone Delivery Program Prime Air Hit by Departure of Key Executives

Two key executives from Amazon.Com Inc's AMZN drone delivery program, Prime Air, have quit, posing a setback for the ambitious drone delivery initiative.

Jim Mullin, Prime Air's chief pilot, quit in July. Robert Dreer, responsible for test operations, departed last week to join Opener, an electric vertical takeoff and landing aircraft startup, CNBC reports.

Also Read: Alphabet's Drone Delivery Unit Promotes CTO To CEO Role

A former Marine One pilot, Mullin led Prime Air facilities' safety, regulatory compliance, and site leads. Dreer reported to Mullin and managed test operations.

Both execs were based at the company's Pendleton site in Oregon.

Prime Air has struggled to become fully operational since its announcement in 2013 by Jeff Bezos. Prime Air faced challenges due to regulatory restrictions on drone deliveries and a series of crashes in recent years.

CEO Andy Jassy's cost-cutting strategy in response to slowing growth led to significant layoffs within the company, including Prime Air.

The drone unit had begun durability and reliability testing as a regulatory requirement by the Federal Aviation Administration (FAA).

Such testing is essential for Prime Air to develop and launch new drone models.

Despite the setbacks, Amazon remains committed to advancing drone delivery technology and addressing the challenges faced by Prime Air.

It is amid completing D&R testing for its current drone model, the MK27-2. It will have to undergo the same regulatory process for its next-generation version, the MK30, which Amazon expects to launch in 2024.

Previous reports indicated Alibaba Group Holding Limited's BABA trial with robotic delivery for the last leg of the journey to cut costs and time.

Price Action: AMZN shares traded higher by 0.85% at $139.02 premarket on the last check Thursday.

Photo via Wikimedia Commons

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.