An Israeli autonomous drone delivery company, Flytrex, has started commercial operations in Reykjavik, Iceland, one of the first in the world to offer the service on demand.

Tel Aviv-based Flytrex’s drones will fly more than 2.5 kilometers (1.6 mile) across a large bay that separates two parts of the city, delivering for online marketplace Aha, company Chief Executive Officer Yariv Bash said in an interview.

The drones will drop off the goods at a designated landing pad where they will then be taken to their final destination by foot, scooter or car. The companies hope to receive regulatory approval by the end of the year to transport orders straight to customers’ backyards.

Using drones will save Aha 60 percent of delivery costs to that area of Reykjavik, where it serves 8,000 customers, he said. Currently the drones make up to 10 deliveries a day, and will double the number by the end of next week.

Some heavy-hitters are working on developing drone delivery, including Inc. and Google parent Alphabet Inc. Airbus SE, the European aerospace conglomerate, is starting a company to provide unmanned aerial services as well, estimating in May that the field could increase to more than $120 billion annually as the use of such fleets expands.


Image: Flytrex – Youtube