Cost elements of drones in LMD
| Cost element | Explanation/examples | References |
|---|---|---|
| Drone hardware | Cost of the drone device (including its battery, motor, rotors, etc.) and its attachments (e.g. smart capsules, sensors, cameras, etc.) | Cheng et al. (2020), Ghelichi et al. (2021), Oakey et al. (2022) |
| Battery replacement | Cost of replacing old batteries with new ones – depends on battery lifetime, type (e.g. lithium-ion) and time needed for replacement | Asadi et al. (2022), Huang et al. (2022b), Li et al. (2022b), Oakey et al. (2022) |
| Battery charging | Cost of battery charging per hour – depends on the energy source, battery capacity and time needed for full charges | Asadi et al. (2022), Ghelichi et al. (2021), Oakey et al. (2022) |
| Maintenance and depreciation | Covers the warranty, maintenance and depreciation costs of the drone and its attachments | Dorling et al. (2017), Mohamad et al. (2020), Shavarani et al. (2019b) |
| Software and data usage | Cost of purchasing/subscribing to software for drone operations and navigation. Includes data usage cost | De Silvestri et al. (2022), Oakey et al. (2022), Shao et al. (2020) |
| Labor charges | Compensating laborers who operate drones, monitor them, resolve technical issues, fulfill orders and ensure safe operations. Covers recruitment, training and benefit costs | De Silvestri et al. (2022), Dhote and Limbourg (2020), Gunaratne et al. (2022), Oakey et al. (2022) |
| Regulatory compliance | Expenses to comply with operational, safety, privacy, ethical and environmental regulations. Covers cost of obtaining necessary licenses, registration cost, airspace charges, taxation, lobbying, etc. | Li et al. (2022a), Ben Dor and Hoffman (2022), De Silvestri et al. (2022), Oakey et al. (2022) |
| Insurance coverage | Charges paid to insurance firms to compensate for injuries caused by drones to people, damages (to drones, payloads, property, flying objects, etc.) and delivery delays | Lemardele et al. (2021), Oakey et al. (2022), Rao et al. (2016) |
| Supportive means of transport | For multi-modal delivery setups, such as operating drones with trucks. Covers cost of acquiring and operating trucks, drivers' wages, operating software, etc. | Gunaratne et al. (2022), Dukkanci et al. (2021), Sawadsitang et al. (2018) |
| Facility charges | Cost of constructing, renting and operating operational facilities, charging stations and warehouses in conjunction with drone service coverage | Ghelichi et al. (2021), Lamb et al. (2022), Shavarani et al. (2019a) |
| Cost element | Explanation/examples | References |
|---|---|---|
| Drone hardware | Cost of the drone device (including its battery, motor, rotors, etc.) and its attachments (e.g. smart capsules, sensors, cameras, etc.) | |
| Battery replacement | Cost of replacing old batteries with new ones – depends on battery lifetime, type (e.g. lithium-ion) and time needed for replacement | |
| Battery charging | Cost of battery charging per hour – depends on the energy source, battery capacity and time needed for full charges | |
| Maintenance and depreciation | Covers the warranty, maintenance and depreciation costs of the drone and its attachments | |
| Software and data usage | Cost of purchasing/subscribing to software for drone operations and navigation. Includes data usage cost | |
| Labor charges | Compensating laborers who operate drones, monitor them, resolve technical issues, fulfill orders and ensure safe operations. Covers recruitment, training and benefit costs | |
| Regulatory compliance | Expenses to comply with operational, safety, privacy, ethical and environmental regulations. Covers cost of obtaining necessary licenses, registration cost, airspace charges, taxation, lobbying, etc. | |
| Insurance coverage | Charges paid to insurance firms to compensate for injuries caused by drones to people, damages (to drones, payloads, property, flying objects, etc.) and delivery delays | |
| Supportive means of transport | For multi-modal delivery setups, such as operating drones with trucks. Covers cost of acquiring and operating trucks, drivers' wages, operating software, etc. | |
| Facility charges | Cost of constructing, renting and operating operational facilities, charging stations and warehouses in conjunction with drone service coverage |
Source(s): Created by authors
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