Estimation question

How many drones do you need to serve the Bay area?

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What this question tests

Estimation combining geography, demand, and operational throughput assumptions for a hypothetical drone delivery service.

How to approach it

  1. Define scope, assume this means the greater Bay Area population centers, roughly 7 million people, served by drone delivery for small packages.
  2. Estimate daily delivery demand, assume 2 percent of the population orders a drone eligible small package on a given day, roughly 140,000 deliveries per day.
  3. Estimate drone throughput, assume each drone can complete 10 round trip deliveries per day accounting for charging, loading, and flight time.
  4. Divide demand by throughput: 140,000 divided by 10 gives roughly 14,000 drones needed to cover peak daily demand.
  5. Adjust for redundancy and maintenance downtime, assume 20 percent extra fleet capacity, landing around 16,000 to 17,000 drones total.
  6. State the final estimate as a range and flag daily order penetration as the most uncertain and sensitive assumption.

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