Amazon faces FAA probe after delivery drone incident in TexasSkip NavigationMarketsPre-MarketsU.S. MarketsCurrenciesCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePoliticsWhite HousePolicyDefenseCongressExpanding OpportunityVideoLatest VideoFull EpisodesLivestreamLive AudioLive TV ScheduleCNBC PodcastsCEO InterviewsCNBC DocumentariesDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenuTechAmazon faces FAA probe after delivery drone snaps internet cable in TexasPublished Tue, Nov 25 20259:11 PM ESTUpdated Tue, Nov 25 20259:58 PM ESTAnnie Palmer@in/annierpalmer/@annierpalmerWATCH LIVEKey PointsAmazon is facing a federal probe after one of its delivery drones downed an internet cable in central Texas last week. The incident occurred last week when an Amazon's MK30 drones got caught on an internet cable line in Waco, Texas, according to a video of the incident viewed and verified by CNBC. Amazon's goal is to deliver 500 million packages by drone per year by the end of the decade, but progress has been slowed due to regulatory hurdles, missed deadlines and layoffs.In this articleAMZNFollow your favorite stocksCREATE FREE ACCOUNTAmazon's new MK30 Prime Air drone is displayed during Amazon's "Delivering the Future" event at the company's BFI1 Fulfillment Center, Robotics Research and Development Hub in Sumner, Washington on Oct. 18, 2023.Jason Redmond | AFP | Getty ImagesAmazon is facing a federal probe after one of its delivery drones downed an internet cable in central Texas last week. The probe comes as Amazon vies to expand drone deliveries to more pockets of the U.S., more than a decade after it first conceived the aerial distribution program, and faces stiffer competition from Walmart, which has also begun drone deliveries. The incident occurred on Nov. 18 around 12:45 p.m. Central in Waco, Texas. After dropping off a package, one of Amazon's MK30 drones was ascending out of a customer's yard when one of its six propellers got tangled in a nearby internet cable, according to a video of the incident viewed and verified by CNBC. The video shows the Amazon drone shearing the wire line. The drone's motor then appeared to shut off and the aircraft landed itself, with its propellers windmilling slightly on the way down, the video shows. The drone appeared to remain in tact beyond some damage to one of its propellers. The Federal Aviation Administration is investigating the incident, a spokesperson confirmed. The National Transportation Safety Board said the agency is aware of the incident but has not opened a probe into the matter. Amazon confirmed the incident to CNBC, saying that after clipping the internet cable, the drone performed a "safe contingent landing," referring to the process that allows its drones to land safely in unexpected conditions."There were no injuries or widespread internet service outages. We've paid for the cable line's repair for the customer and have apologized for the inconvenience this caused them," an Amazon spokesperson told CNBC, noting that the drone had completed its package delivery.watch nowVIDEO0:2800:28Amazon delivery drone snaps internet cable in TexasTechThe incident comes after federal investigators last month opened a separate probe into a crash involving two of Amazon's Prime Air drones in Arizona. The two aircrafts collided with a construction crane in Tolleson, a city west of Phoenix, prompting Amazon to temporarily halt drone deliveries in the area.For over a decade, Amazon has been working to realize founder Jeff Bezos' vision of drones whizzing toothpaste, books and other goods to customers' doorsteps in 30 minutes or less. The company began drone deliveries in 2022 in College Station, Texas, and Lockeford, California.But progress has been slowed by a mix of regulatory hurdles, missed deadlines and layoffs in 2023 that coincided with broader cost-cutting efforts by Amazon CEO Andy Jassy. The company has previously said its goal is to deliver 500 million packages by drone per year by the end of the decade. The hexacopter-shaped MK30, the latest generation of Amazon's Prime Air drone, is meant to be quieter, smaller and lighter than previous versions. Amazon says the drones are equipped with a sense-and-avoid system that enables them to "detect and stay away from obstacles in the air and on the ground." The company recommends that customers maintain "about 10 feet of open space" on their property so drones can complete deliveriesThe company began drone deliveries in Waco earlier this month for customers within a certain radius of its same-day delivery site who order eligible items weighing 5 pounds or less. The drone deliveries are supposed to drop packages off in under an hour. Amazon has brought other locations online in recent months, including Kansas City, Missouri, Pontiac, Michigan, San Antonio, Texas, and Ruskin, Florida. Amazon has also announced plans to expand drone deliveries to Richardson, Texas. Walmart began offering drone deliveries in 2021, and currently partners with Alphabet's Wing and venture-backed startup Zipline to make drone deliveries in a number of states, including in Texas.WATCH: Amazon unveils satellite terminal for enterprise customers — but Starlink still dominateswatch nowVIDEO2:1002:10Amazon unveils satellite terminal for enterprise customers — but Starlink still dominatesSquawk Box AsiaSubscribe to CNBC PROSubscribe to Investing ClubLicensing & ReprintsCNBC CouncilsSelect Personal FinanceJoin the CNBC PanelClosed CaptioningDigital ProductsNews ReleasesInternshipsCorrectionsAbout CNBCSite MapPodcastsCareersHelpContactNews TipsGot a confidential news tip? 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Amazon is currently facing a federal investigation initiated by the Federal Aviation Administration (FAA) following an incident in Waco, Texas, where one of its delivery drones inadvertently severed an internet cable line. The incident, which occurred on November 18th, involved an Amazon MK30 drone encountering the cable while ascending from a customer’s property after delivering a package. The drone’s propeller became entangled, leading to the shearing of the cable and a subsequent, automated “safe contingent landing.” Remarkably, the drone sustained minimal damage, and there were no reported injuries or disruptions to internet service. Amazon confirmed the event and stated that it promptly repaired the cable for the affected customer, along with extending an apology for the inconvenience.

This event marks the second FAA investigation involving Amazon’s Prime Air drone program. Last month, a separate probe was opened regarding a collision between two Prime Air drones in Tolleson, Arizona, where the aircraft impacted a construction crane. As a direct result of this incident, Amazon temporarily suspended drone deliveries in the area. The company’s ambition to achieve 500 million drone deliveries annually by the end of the decade, spearheaded by founder Jeff Bezos, has experienced setbacks primarily due to regulatory obstacles, missed deadlines, and cost-cutting measures implemented in 2023. These adjustments have included layoffs reflecting broader strategic shifts by current CEO Andy Jassy.

The MK30 drone, Amazon’s latest iteration of the Prime Air system, is designed to be quieter, smaller, and lighter than previous models. It incorporates a “sense-and-avoid” system, intended to detect and evade obstacles both in the air and on the ground. Amazon recommends maintaining approximately 10 feet of open space around delivery zones. The company’s drone delivery operations currently operate in locations including College Station, Texas; Lockeford, California; Waco, Texas; Kansas City, Missouri; Pontiac, Michigan; San Antonio, Texas; Ruskin, Florida and Richardson, Texas.

Competition in this space is intensifying, primarily from Walmart, which has commenced its own drone delivery program in partnership with Alphabet’s Wing and Zipline. The ongoing regulatory landscape, combined with technological advancements and increasing competition, present significant challenges and opportunities for Amazon as it continues to develop and deploy its drone delivery network.