Send in the drones: Why is the Coles share price taking off today?

Coles has turned off lows in today's session.

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Key points
  • Coles shares have spiked today despite no market sensitive news
  • The company did start its drone delivery service in QLD, however
  • The Coles share price is down more than 6% since trading resumed in January

The Coles Group Ltd (ASX: COL) share price is walking higher today despite no market-sensitive news for the company.

After a difficult few months on the chart, Coles shares have turned a small corner and are now up 2.26% in the past month of trade.

Despite this, it's been a challenging period over the past year of trade for the Coles share price, as seen in the chart below.

TradingView Chart
Woman looks amazed and shocked as she looks at her laptop.

Image source: Getty Images

What's up with the Coles share price?

Whilst there's been nothing market sensitive from the company today, noteworthy is the fact that it is launching a new drone delivery service that is making the headlines.

The retailer will launch its drone delivery service in parts of the Gold Coast, QD from next week.

Drones are increasingly being utilised in delivery and Coles will kick things off with essentials such as bread, milk and eggs for the convenience of customers.

In fact, up to 500 of the most popular Coles grocery items will be available for customers to deliver. Alcohol is not available.

The drone delivery program was originally announced by the company back in March.

Partnering with Wing, global on-demand drone delivery service, the company is the first in Australia to utilise the technology in this fashion.

At the time of the announcement, Coles Chief Executive eCommerce Ben Hassing said drone delivery was the "next evolution in delivery technology".

It follows in the footsteps of e-commerce titan Amazon, which utilises drone deliveries for parcels and packages purchased online.

For Coles, its pioneering of technology in Australia will be of interest to many within the tech and finance spaces. Whether it converts to greater sales, or share appreciation remains to be seen.

Factors of weather and also timing are also being considered, seeing as the drones can't fly during the night time.

Coles shareholders would welcome the gains today after a difficult year on the chart. The share price is down nearly 7% since trading resumed in January.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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