Amazon Eyes the Skies for Deliveries with Electric Cargo Planes

Amazon and UPS-backed Beta Technologies could change the future of package deliveries with Alia, an electric vertical takeoff and landing (eVTOL) aircraft built for cargo, according to several reports.

While there’s no shortage of electric aircraft companies, competitors like Joby, Archer and Kitty Hawk are being developed for passengers. As a cargo plane, Alia can move packages from suburban warehouses and help make eCommerce more efficient and environmentally friendly.

Alia’s cabin can accommodate 600 pounds of payload, including the pilot, for a maximum of 250 nautical miles.

See also: UPS Expands Green Delivery With Purchase Of Electric Aircraft Fleet

Kyle Clark, founder and CEO of Beta Technologies, told Forbes that he believes his company will even take the lead in eVTOL for passengers since they will have millions of flight hours completed with cargo.

Beta has a lineup of preorders in the queue, including a commitment from UPS to buy approximately 150 Alia aircraft, which cost $4 to $5 million each. The initial 10 are expected to be delivered in 2024.

Martine Rothblatt, CEO of United Therapeutics Corporation, has 60 aircraft and eight charging stations in order to help deliver perishable organs quickly to hospital helipads.

Beta also has $43.6 million in military contracts and was the first electric aircraft to win airworthiness approval from the Air Force for manned flight in May.

Valued at $1.4 billion after a May funding round, Beta is being compared to Rivian, another Amazon-backed EV startup, that has a valuation of $100 billion.

Read more: Amazon Takes Minority Stake In Air Freight Partner

Clark envisions Alia flying from one warehouse to another and eventually straight to large customers, and said that frequent flying could add up to 90% savings on fuel and maintenance, plus another 35% on operating expenses.

The autonomous urban aircraft market is expected to reach $1.5 trillion globally by 2040, according to a Morgan Stanley study.