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Pie from the sky: drone delivery lands in America

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Flying shipments of pizzas and birthday gifts have still not become the norm that tech leaders predicted, but the service is available in parts of the United States
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The little aircraft appeared out of the blue sky above a Texas home, deposited its payload of a mid-morning snack in the yard and zoomed off, as deliveries by drone start becoming a reality in America.

Flying shipments of pizzas and birthday gifts have still not become the norm that tech leaders predicted, but the service is available in parts of the United States and government regulation is catching up. 

Skeptics question whether drone drop-offs can ever work on a large scale, but backers argue they are safer and better for the planet than hulking, greenhouse-gas-spewing delivery trucks –- and faster.

The parcel lowered to the ground from an electric drone hovering above Tiffany Bokhari’s Frisco, Texas, house was in her hands minutes after she placed an order on a smartphone app. 

“On the soda, you can even see the condensation on it because it’s still cold,” she told AFP after the drone from Alphabet-owned Wing had flown off.

Service was new in the area and remained small-scale, but Wing offered the comparison of the up to 1,000 deliveries per day it’s doing in just one part of the Brisbane metro area in Australia.

– Blood and tooth brushes –

A handful of firms already have operations running or will by year’s end in parts of Texas, North Carolina or California, with providers including Israeli startup Flytrex, Wing and e-commerce behemoth Amazon.

In fact, it was Amazon founder Jeff Bezos who in 2013 unveiled a delivery drone in a CBS interview, predicting that within five years airborne shipments would be routinely zipping from fulfillment centers to customers’ doorsteps.

Things haven’t quite gone that way for the company that has otherwise seeped ubiquitously into aspects of modern life, from streaming and food shopping to health care.

When an Amazon delivery drone crashed during a test last year and started a brush fire, it was another setback for the company’s stumbling drone ambitions.

The work has advanced more steadily for others, and in April, Wing announced what it calls “the first commercial drone delivery service” in a major US metro area: Texas’s Dallas-Fort Worth.

Wing, which also offers deliveries to some areas in Australia and Finland, has a weight limit of 2.5-3 pounds (just over one kilo).

“An entire roasted chicken… that’s actually a good visual for the size of what fits,” said Jonathan Bass, who heads marketing and communications for Wing.

Take-out food, prescriptions and household items like toothbrushes are the type of small and light products that have worked for airborne drop-offs, though drones have for years delivered essential items like medical goods in parts of Africa. 

Drone drop-offs of perishable substances like blood make sense in places where infrastructure is lacking and air transport is the best option, yet some experts are skeptical of whether it works everywhere.

– Government rules –

For example, a drone can carry one delivery from a warehouse or store to generally one place, which means a steep drop in efficiency in comparison with an old-fashioned parcel delivery driver.

“It would take a small army of drones to service the 150-200 packages that just one truck normally takes on a route,” wrote Bloomberg Opinion columnist Thomas Black, who still saw potential for “premium” emergency deliveries.

But Flytrex CEO Yariv Bash asserted that electric drones, in addition to being more efficient than take-out food deliveries done by a fossil fuel-powered car, were safer.

“Drones don’t get tired. They don’t try to text while driving. They don’t drink and drive,” he told AFP. “You just get much better service.” 

The question of safety has been at the heart of long processes of getting government approvals to work in the United States.

Bass, from Wing, noted that although they use a 10-pound foam drone, the company had to get the same certification that firms like DHL or UPS need for their delivery aircraft.

But he noted the Federal Aviation Administration transport regulator has launched a committee that’s made recommendations for regulating drones in the United States, adding: “I think that would really unlock faster growth” in the country.

Growth in the United States wouldn’t be a surprise, as McKinsey & Company figures show the global number of commercial deliveries spiking from around 6,000 in 2018 to nearly half a million last year.

“But the path ahead is not yet clear,” the firm’s March report said. “Regulations, customer acceptance, and cost will all determine whether the industry reaches its potential.”

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Five things we learned at the China Auto Show

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The consumer tech giant is the latest entrant to China's cut-throat EV market, with its new SU7 model the star of the show
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One of China’s largest auto shows kicked off in Beijing on Thursday, with electric vehicle makers keen to show off their latest designs and high-tech accessories to consumers in the fiercely competitive market.

Here are the key developments from Auto China’s first day of action:

– Xiaomi –

The consumer tech giant is the latest entrant to China’s cut-throat EV market, with its new SU7 model the star of the show.

Less than one month after its launch, almost 76,000 pre-orders have been placed, Xiaomi said, an accumulation of orders that will take months to deliver given its current production capacity.

Xiaomi boss Lei Jun was swarmed at Auto China on Thursday by legions of loyal fans, eager to follow the entrepreneur’s every move around the convention complex.

– XPeng –

Among car giant Tesla’s main rivals in the Chinese market is XPeng, which announced plans to begin large-scale deployment of AI-assisted driving in its vehicles in May.

“The AI learns the driver’s habits and can then imitate their driving” and enhance security, company boss He Xiaopeng told an audience while presenting the X9, a seven-seater “so spacious it can accommodate five bicycles in its trunk”.

– CATL –

Also present at the show was Chinese battery giant CATL, founded in 2011 in the eastern city of Ningde and now the undisputed global leader in EV batteries.

Its factories produce more than a third of car batteries sold worldwide and are equipped in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.

Responding Thursday to one of the main criticisms of EVs — long charging times that restrict mobility — CATL announced a remedy: “Shenxing Plus”, an ultra-fast battery pack that the firm says earns one kilometre (0.62 miles) in range for every second of charging.

– Nio –

In contrast to much of the EV industry, Chinese automaker Nio focuses on battery-swap technology rather than recharging individual vehicles.

The Shanghai-based firm founded 10 years ago said Thursday it had accumulated nearly 2,500 battery swapping points across China.

Nio also presented its ET7, a sedan model the firm claims has a range of 1,000 kilometres.

– Tencent-Toyota alliance –

Japanese auto-making juggernaut Toyota also announced Thursday that it would join hands with Chinese tech and gaming giant Tencent in AI, a bid to capitalise on local consumers’ increasing appetite for advanced smart car features.

The cooperation will apply to Toyota vehicles sold in China, said Toyota, which like other foreign manufacturers, has struggled to keep up in the ultra-competitive market as the industry shifts to electric.

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US to give Micron $6.1 bn for American chip factories

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US lawmakers have approved billions of dollars to support the onshoring of semiconductor production
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Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, the White House said Thursday.

The award, to be announced by President Joe Biden as he travels to Syracuse, New York, is the latest in a series of efforts by Washington to bring semiconductor production back to the country.

The United States has been working to ensure its lead in the chip industry, especially with regards to the development of artificial intelligence — both on national security grounds and in the face of competition with China.

The investment will help Micron “bring back leading-edge memory chip manufacturing to the United States for the first time in 20 years,” Chuck Schumer of New York, the Senate majority leader, told reporters.

The $6.1 billion in direct funding comes under the CHIPS and Science Act, a major package of funding and tax incentives passed by Congress in 2022 to boost research and US semiconductor production.

The White House said the funds will go to supporting construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron is headquartered.

The US Commerce Department will also make up to $7.5 billion in proposed loans available under a preliminary deal.

Micron is set to invest up to $125 billion across both states over the next two decades “to build a leading-edge memory manufacturing ecosystem,” according to the White House.

The US chipmaker’s total investment is due to create more than 70,000 jobs, including 20,000 direct construction and manufacturing roles.

– Supply chain shocks –

While semiconductors were invented in the United States, the White House noted that the country makes just around 10 percent of the world’s chips now — and “none of the most advanced ones.”

Micron CEO Sanjay Mehrotra called the step a “historic moment” for US semiconductor manufacturing, saying its US investments will “create many high-tech jobs.”

“Leading-edge memory chips are foundational to all advanced technologies,” said Commerce Secretary Gina Raimondo.

She added that returning the development and production of advanced memory semiconductor technology to the country is “crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.”

Chips are needed in powering everything from smartphones to fighter jets, and are increasingly in demand by automakers, especially for electric vehicles.

But the global chip industry is dominated by just a few firms, including TSMC in Taiwan and California-based Nvidia.

The United States is dependent on Asia for chip production, making it vulnerable to supply chain shocks, such as during the Covid-19 pandemic or in the event of a major geopolitical crisis.

“We’re already seeing AI revolutionize our world and grow at an unprecedented pace,” said Schumer. 

“We cannot, cannot have these chips made overseas, especially by competitors like China. We cannot have them be the only supplier,” he added.

Apart from the grants to Micron, Biden is also expected to announce four new “workforce hubs” in the Upstate New York region, the state of Michigan, as well as the cities of Philadelphia and Milwaukee.

According to senior government officials, such hubs are a way to spur more commitments from employers and educational institutions.

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TikTok suspends rewards programme after EU probe

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TikTok Lite arrived in France and Spain in March allowing users aged 18 and over to earn points that can be exchanged for goods
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TikTok on Wednesday announced the suspension of a feature in its spinoff TikTok Lite app in France and Spain that rewards users for watching and liking videos, after the European Union launched a probe.

The popular video-sharing social media platform, owned by Chinese company ByteDance, said the suspension would remain  “while we address the concerns that they have raised”.

The European Commission’s top tech enforcer, Thierry Breton, said the EU investigation would continue, stating: “Our children are not guinea pigs for social media.”

TikTok Lite arrived in France and Spain — the only EU countries where it is available — in March. Users aged 18 and over can earn points to exchange for goods like vouchers or gift cards through the app’s rewards programme.

TikTok Lite is a smaller version of the popular TikTok app, taking up less memory in a smartphone and made to perform over slower internet connections.

The European Commission on Monday announced an investigation into TikTok Lite, and threatened to have the rewards programme suspended, raising concerns about the risk to users’ mental health.

The commission demanded TikTok provide more information by a Wednesday deadline, along with any defence against the threatened suspension.

Breton said in a statement that “our cases against TikTok on the risk of addictiveness of the platform continue”.

“We suspect that this (rewards) feature could generate addiction and that TikTok did not do a diligent risk assessment and take effective mitigation measures prior to its launch,” he said.

The probe is the EU’s second against TikTok under a sweeping new law, the Digital Services Act (DSA), that requires digital firms operating in the 27 nations to effectively police online content.

In February, the commission opened a formal probe into TikTok over alleged violations of its obligations to protect minors online.

– TikTok squeezed –

TikTok is also under pressure across the Atlantic.

A bill to ban TikTok cleared the US Congress after the Senate on Tuesday approved legislation requiring TikTok to be divested from ByteDance.

TikTok’s CEO, Shou Zi Chew, said the company would fight the law — which he said amounted to a ban — in US courts.

The European Commission has refused to comment on the United States’ move. Instead it has focused on the EU’s legal arsenal to bring big tech into line with its rules.

The move against the TikTok Lite rewards scheme was the latest instance of the EU flexing that legal muscle against online platforms.

It is also investigating tech billionaire Elon Musk’s X, the former Twitter, over alleged illegal content.

TikTok Lite users can win rewards if they log in daily for 10 days, if they spend time watching videos (with an upper limit of 60 to 85 minutes per day), and if they undertake certain actions, such as liking videos and following content creators.

TikTok is among 22 “very large” digital platforms, including Amazon, Facebook, Instagram and YouTube, that must comply with stricter rules under the DSA since August last year.

The law gives the EU the power to hit companies with heavy fines as high as six percent of a digital firm’s global annual revenues. Repeat offenders can see their platforms blocked in the EU.

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