FAA proposes new rule to allow companies to expand drone deliveries

(CBS, KYMA/KECY) - The skies could soon open up to a lot more drone deliveries as the Federal Aviation Administration (FAA) recently proposed a new rule making it easier for companies to fly drones beyond the operator's line of sight.

The change would potentially expand drone deliveries to millions of U.S. homes.

More than six years ago, the FAA approved drones for commercial home deliveries, but the technology has been slow to take off beyond a few suburbs and rural areas.

"The density of merchants that you would partner with, the need where you have like, okay, there's still relatively long distances and like it's not in the city, but there's still traffic. Like there's a nice sweet spot there for that. And for us, it's like we can build a very successful business addressing that sort of segment."

Adam Woodworth, CEO, Wing

Government regulations and weather conditions aren't the only challenges for moving products by drones. There's also a cost factor.

According to research from the University of Missouri St. Louis, the cost of carrying a package by drone is more than six times higher than deliveries via traditional vehicles.