Amazon has lost a high-profile executive in its drone delivery unit who was the company’s primary liaison with federal regulators, CNBC has learned.
Sean Cassidy, Prime Air’s director of safety, flight operations and regulatory affairs, announced his departure from the company last week in an internal note to employees, a copy of which was viewed by CNBC. Amazon hired Cassidy, a former Alaska Airlines pilot and vice president of the world’s largest pilots union, in 2015 to oversee strategic partnerships in the drone program.
“This is my last day at Prime Air and at Amazon, so a quick note to pass along my profound thanks to so many of my friends and colleagues here who have made this nearly nine year journey such an amazing experience,” Cassidy wrote in the memo.
Cassidy oversaw much of Amazon’s relations with the Federal Aviation Administration as it sought to get the ambitious drone delivery program, a pet project of Amazon founder Jeff Bezos, off the ground. Bezos predicted a decade ago that a fleet of Amazon drones would take to the skies in about five years, dropping packages on customers’ doorsteps in 30 minutes or less. That vision hasn’t materialized as quickly as Bezos hoped.
Amazon did not immediately respond to CNBC’s request for comment about Cassidy’s departure.
In August 2020, Amazon received Part 135 certification from the FAA, allowing it to use drones to deliver packages, but with some restrictions. Last year, Amazon announced it would begin testing drone deliveries in two small markets in California and Texas.
But just as the program appeared to be set to expand, Prime Air in January was by affected layoffs as part of broader job cuts at Amazon. It has also been beset with regulatory setbacks and has struggled to meet delivery goals. In August, the unit lost two executives key to its operations, CNBC previously reported.
David Carbon, Amazon’s drone delivery head and a former Boeing executive, previously set an internal target to make 10,000 deliveries in 2023 between its two test sites.
Amazon said in October that its drones have “safely delivered hundreds of household items” in College Station, Texas, since December 2022, and it’s beginning medication delivery by drone in the area. The announcement didn’t say how many deliveries have been made in Lockeford, California, the company’s other test site.
In late October, Amazon cleared a significant regulatory hurdle when the FAA amended restrictions that dictated where and how its drones could fly. Cassidy wrote to the FAA in July asking that the agency allow Amazon to fly drones out of sight of a “visual observer,” or an employee who keeps an eye on the drone while it’s in flight to make sure it avoids hazards, according to government filings. Cassidy said Prime Air had spent years developing a “detect-and-avoid” system for its MK27-2 drone, which allows the vehicle to steer clear of aircraft, people and pets, as well as static objects such as chimneys, eliminating the need for visual observers.
On Oct. 23, the FAA granted Amazon’s request and loosened restrictions on where its drones can operate, permitting it to fly over roadways and cars when necessary to complete a route. Some restrictions remain intact, such as rules prohibiting drones from flying over open-air assemblies of people, and schools during times of operation.
It hasn’t been entirely smooth sailing entirely since then. The National Transportation Safety Board is investigating a Nov. 10 crash at Amazon’s drone test site in Pendleton, Oregon, according to a federal crash report viewed by CNBC. The drone sustained “substantial” damage during the incident, but no one was injured, and there were no fires or explosions at the site.
The NTSB said it’s conducting a class 4 investigation into the incident, which it considers to be more limited in scope versus other probes.
It comes after a separate incident at the Pendleton site in June, where a drone made an emergency landing in a field and was destroyed. Amazon said at the time it tests its drone systems “up to their limits and beyond,” and that it reported the incident to regulators.
Amazon logo on a brick building exterior, San Francisco, California, August 20, 2024.
Smith Collection | Gado | Archive Photos | Getty Images
Amazon representatives met with the House China committee in recent months to discuss lawmaker concerns over the company’s partnership with TikTok, CNBC confirmed.
A spokesperson for the House Select Committee on the Chinese Communist Party confirmed the meeting, which centered on a shopping deal between Amazon and TikTok announced in August. The agreement allows users of TikTok, owned by China’s ByteDance, to link their account with Amazon and make purchases from the site without leaving TikTok.
“The Select Committee conveyed to Amazon that it is dangerous and unwise for Amazon to partner with TikTok given the grave national security threat the app poses,” the spokesperson said. The parties met in September, according to Bloomberg, which first reported the news.
Representatives from Amazon and TikTok did not immediately respond to CNBC’s request for comment.
TikTok’s future viability in the U.S. is uncertain. In April, President Joe Biden signed a law that requires ByteDance to sell TikTok by Jan. 19. If TikTok fails to cut ties with its parent company, app stores and internet hosting services would be prohibited from offering the app.
President-elect Donald Trump could rescue TikTok from a potential U.S. ban. He promised on the campaign trail that he would “save” TikTok, and said in a March interview with CNBC’s “Squawk Box” that “there’s a lot of good and there’s a lot of bad” with the app.
In his first administration, Trump had tried to implement a TikTok ban. He changed his stance around the time he met with billionaire Jeff Yass. The Republican megadonor’s trading firm, Susquehanna International Group, owns a 15% stake in ByteDance, while Yass has a 7% stake in the company, NBC and CNBC reported in March.
— CNBC’s Jonathan Vanian contributed to this report.
A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.
David Paul Morris | Bloomberg | Getty Images
Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.
Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.
Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.
Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.
Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.
Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.
The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.
Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.
Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.
Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.
“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.
“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.
“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”
Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal.
Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.
“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.
‘No longer secrecy versus transparency’
Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.
She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.
Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”
She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”
Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.
“It’s no longer secrecy versus transparency,” she added.