Tesco share price is up today after the company announced it was delving into the drone delivery market. Tesco, which is the UK’s biggest retailer, is reported by Reuters as saying it would start trials on home delivery of groceries using drones next month. The pilot phase of this project is expected to take place in Ireland. The project is a joint venture with drone delivery company Manna, which has a license to operate the crewless aerial vehicles in Ireland. Manna boasts of drones that can conduct 3-minute air deliveries using drones capable of attaining speeds of over 80kph.
One of the fallouts of the coronavirus pandemic is that many companies in the retail supermarket business had to reach their customers outside of their stores, as lockdowns kept consumers bottled up in their homes. Amazon was among the first companies to trial the use of drones for deliveries. The technology has been deployed successfully in countries like Rwanda, where drones deliver life-saving plasma products to hospitals in hard-to-reach areas.
Walmart is also planning to collaborate with Flytrex, and end-to-end delivery firm to engage in the delivery of household products. Tesco is currently trading at 221.3, or a modest 0.6% on the day as it prepares for life without three key exco members.
Technical Outlook for Tesco
Tesco share price is back on the upside after yesterday’s correction. The correction found support at the 220.2 support line, putting today’s candle on the path towards targeting the resistance at 224.0. A break of this key level brings 228.0 into the picture, with 231.4 and 234.3 remaining in line as possible targets if Tesco share price can gather good bullish momentum.
On the flip side, rejection at 224.0 (this week’s resistance) could allow for another retest of 220.2. A further downside push to 214.0 and 211.3 may follow if there is enough selling pressure to break down this week’s support at 214.0.
Tesco Share Price Chart (daily)