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Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

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Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
TechDrones

Alibaba to test drone delivery in three cities

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Scott Cendrowski
Scott Cendrowski
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By
Scott Cendrowski
Scott Cendrowski
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February 4, 2015, 5:41 AM ET
Inspire 1 Drone Officially Debut In Shenzhen
SHENZHEN, CHINA - NOVEMBER 26: (CHINA OUT) The 'Inspire 1' drone is presented outdoors on November 26, 2014 in Shenzhen, Guangdong province of China. The Inspire 1 drone, which carries a 4k resolution camera, was officially unveiled in Asia on Wednesday in Shenzhen. (Photo by ChinaFotoPress/ChinaFotoPress via Getty Images)Photograph by ChinaFotoPress via Getty Images

Alibaba Group Holdings (BABA) is making good on the vision Amazon’s Jeff Bezos has yet to get off the ground: drone delivery.

The Chinese e-commerce giant said it would test drone delivery in three Chinese cities, Beijing, Shanghai, and Guangzhou, starting Wednesday. The test run, which enables 450 customers to receive one package of ginger tea via its Taobao.com platform, is in partnership with courier Shanghai YTO Express, which has long offered same-day delivery but never drone drop-offs.

Before the one-time drone tests the two companies downplayed the possibility of rapidly expanding drone delivery in statements. Like U.S. officials, Chinese regulators have been cautious about rapidly expanding drone capabilities in the country for reasons including security—China restricts the majority of its air space for military use, a frustrating truth for many private air travel companies looking to expand and take advantage of growing wealth in China.

However, the tests move Alibaba ahead of international rival Amazon.com (AMZN) in the race for ever-more improbable delivery options.

 
Watch more about companies testing drone deliveries from Fortune’s video team:

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