Table 4

Cost elements of drones in LMD

Cost elementExplanation/examplesReferences
Drone hardwareCost 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 replacementCost of replacing old batteries with new ones – depends on battery lifetime, type (e.g. lithium-ion) and time needed for replacementAsadi et al. (2022), Huang et al. (2022b), Li et al. (2022b), Oakey et al. (2022) 
Battery chargingCost of battery charging per hour – depends on the energy source, battery capacity and time needed for full chargesAsadi et al. (2022), Ghelichi et al. (2021), Oakey et al. (2022) 
Maintenance and depreciationCovers the warranty, maintenance and depreciation costs of the drone and its attachmentsDorling et al. (2017), Mohamad et al. (2020), Shavarani et al. (2019b) 
Software and data usageCost of purchasing/subscribing to software for drone operations and navigation. Includes data usage costDe Silvestri et al. (2022), Oakey et al. (2022), Shao et al. (2020) 
Labor chargesCompensating laborers who operate drones, monitor them, resolve technical issues, fulfill orders and ensure safe operations. Covers recruitment, training and benefit costsDe Silvestri et al. (2022), Dhote and Limbourg (2020), Gunaratne et al. (2022), Oakey et al. (2022) 
Regulatory complianceExpenses 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 coverageCharges paid to insurance firms to compensate for injuries caused by drones to people, damages (to drones, payloads, property, flying objects, etc.) and delivery delaysLemardele et al. (2021), Oakey et al. (2022), Rao et al. (2016) 
Supportive means of transportFor 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 chargesCost of constructing, renting and operating operational facilities, charging stations and warehouses in conjunction with drone service coverageGhelichi et al. (2021), Lamb et al. (2022), Shavarani et al. (2019a) 

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