Amazon gets FAA approval allowing it to expand drone deliveries piloted outside of Houston

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An FAA spokesperson said the approval applies to College Station, Texas, where the company launched drone deliveries in late 2022. Photo courtesy of Amazon

Federal regulators have given Amazon key permission that will allow it to expand its drone delivery program, the company announced Thursday.

In a blog post published on its website, Seattle-based Amazon said that the Federal Aviation Administration has given its Prime Air delivery service the OK to operate drones “beyond visual line of sight,” removing a barrier that has prevented its drones from traveling longer distances.

With the approval, Amazon pilots can now operate drones remotely without seeing it with their own eyes. An FAA spokesperson said the approval applies to College Station, Texas, where the company launched drone deliveries in late 2022.

Amazon said its planning to immediately scale its operations in that city in an effort to reach customers in more densely populated areas. It says the approval from regulators also "lays the foundation” to scale its operations to more locations around the country.

Businesses have wanted simpler rules that could open neighborhood skies to new commercial applications of drones, but privacy advocates and some airplane and balloon pilots remain wary.

Amazon, which has sought this permission for years, said it received approval from regulators after developing a strategy that ensures its drones could detect and avoid obstacles in the air.

Furthermore, the company said it submitted other engineering information to the FAA and conducted flight demonstrations in front of federal inspectors. Those demonstrations were also done “in the presence of real planes, helicopters, and a hot air balloon to demonstrate how the drone safely navigated away from each of them,” Amazon said.

The FAA’s approval marks a key step for the company, which has had ambitions to deliver online orders through drones for more than a decade. During a TV interview in 2013, Amazon founder Jeff Bezos said drones would be flying to customer’s homes within five years. However, the company’s progress was delayed amid regulatory setbacks.

Last month, Amazon said it would close a drone delivery site in Lockeford, California - one of only two in the nation - and open another one later this year in Tolleson, Arizona, a city located west of Phoenix.

By the end of the decade, the company has a goal of delivering 500 million packages by drone every year.

Amazon Prime Air drones will fly into College Station later this year. Photo courtesy of Amazon

Amazon plans to land drone delivery down the road from Houston

prime spot

A Houston neighbor will be among the first in the nation to test pilot a game-changing delivery system. Amazon has announced plans to deploy its state-of-the art Prime Air drone delivery in College Station, Texas later this year.

The online juggernaut is already reaching out to College Station customers, telling them that they’ll soon receive free and fast drone delivery on thousands of everyday items. The deployment marks the largest selection of items to ever be available for drone delivery, per Amazon. College Station joins Lockeford, California as targeted test sites for drone launch.

“We are impressed with so many aspects of College Station,” notes an Amazon blog post announcing the news. “The innovative research conducted by Texas A&M University, the small-town feel, and the sense of community that is clear from the minute you arrive in town all make it a very special place.”

Jeff Bezos’ empire plans to also collaborate with the Aggies on tech. “We are thrilled about the opportunity to launch this service in College Station and partner with the city and its world-class university on some of the great work they’ve been doing in the area drone technology,” the post adds.

How will it work? Once onboarded, College Station customers can then view Prime Air-eligible items on Amazon, where they can place orders and receive an estimated arrival time with a status tracker for their order.

Amazon Prime Air’s New Delivery Dronewww.youtube.com

Drones will then fly to the designated delivery location, descend to the customer’s backyard, and hover at a safe height. The drones will then safely release the package, rise back up to altitude, and return to base, per Amazon.

Amazon is touting the difference of its drone fleet versus the masses. Prime Air drones fly up to 50 miles per hour, up to an altitude of 400 feet, and carry packages of up to 5 pounds.

Unlike most drones, Amazon notes, Prime Air drones utilize a sophisticated, sense-and-avoid system allowing them to operate at greater distances while safely and reliably avoiding other aircraft, people, pets, and obstacles. That means the drones can identify objects such as aircraft, birds, or static places such as trees and chimneys, avoid them, and select a safe space to land and later, safely leave.

“Being one of the first drone delivery locations for Amazon puts College Station at the forefront of this exciting technology,” said John Sharp, chancellor of The Texas A&M University System, in a statement. “What happens here will help advance drone delivery for the rest of the country and perhaps the rest of the world. We welcome Amazon to our community and stand ready to assist however we can.”

College Station, Amazon promises, will benefit by more than just speedy, environmentally friendly delivery. “We’re bringing more than drone delivery to Lockeford and College Station,” notes the Amazon blog. “Through these Prime Air drone deliveries, we will create new jobs, build partnerships with local organizations, and help to reduce the impact of climate change on future generations.”

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This article originally ran on CultureMap.

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Houston VC funding surged in 2024, fueled by major Q4 activity

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The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Houston space company lands latest NASA deal to advance lunar logistics

To The Moon

Houston-based space exploration, infrastructure, and services company Intuitive Machines has secured about $2.5 million from NASA to study challenges related to carrying cargo on the company’s lunar lander and hauling cargo on the moon. The lander will be used for NASA’s Artemis missions to the moon and eventually to Mars.

“Intuitive Machines has been methodically working on executing lunar delivery, data transmission, and infrastructure service missions, making us uniquely positioned to provide strategies and concepts that may shape lunar logistics and mobility solutions for the Artemis generation,” Intuitive Machines CEO Steve Altemus says in a news release.

“We look forward to bringing our proven expertise together to deliver innovative solutions that establish capabilities on the [moon] and place deeper exploration within reach.”

Intuitive Machines will soon launch its lunar lander on a SpaceX Falcon 9 rocket to deliver NASA technology and science projects, along with commercial payloads, to the moon’s Mons Mouton plateau. Lift-off will happen at NASA’s Kennedy Space Center in Florida within a launch window that starts in late February. It’ll be the lander’s second trip to the moon.

In September, Intuitive Machines landed a deal with NASA that could be worth more than $4.8 billion.

Under the contract, Intuitive Machines will supply communication and navigation services for missions in the “near space” region, which extends from the earth’s surface to beyond the moon.

The five-year deal includes an option to add five years to the contract. The initial round of NASA funding runs through September 2029.

Play it back: Houston home tech startup begins 2025 with fresh funding

HOUSTON INNOVATORS PODCAST EPISODE 272

One of the dozen or so Houston startups kicking of the new year with fresh funding is SmartAC.com, a company that's designed a platform that enables contractors in the HVAC and plumbing industries to monitor, manage, and optimize their maintenance memberships through advanced sensors, AI-driven diagnostics, and proactive alerts.

Last month, the SmartAC.com raised a follow-on round with support from local investor Mercury to continue growth and expansion of the product, which has evolved on many ways since the company launched in 2020, emerging from stealth with $10 million raised in a series A. In a May 2023 interview for the Houston Innovators Podcast, Founder and CEO Josh Teekell explained how he embraced the power of a pivot.

The company's sensors can monitor all aspects of air conditioning units and report back any issues, meaning homeowners have quicker and less costly repairs. While SmartAC.com started with providing the service and tech to homeowners directly, Teekell says he's had a greater interest in working with plumbers and HVAC companies who then deploy the technology to their customers.

"It became quite evident that homeowners don't care about air conditioning really at all until their system breaks," Teekell says on the show. "The technology is really built around giving those contractors as another way to gain a customer relationship and keep it."

Revisit the podcast episode below where Teekell talks about SmartAC.com's last raise.

SmartAC.com's previous round in 2023 — a $22 million series B — was used grow its team that goes out to deploy the technology and train the contractors on the platform.

"We've been very fortunate to get some of the biggest names in Houston on our cap table," Teekell says in the May 2023 conversation. "Since we're raising a bunch of money locally, everyone understands what a pain air conditioning can be."

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