Amazon has halted testing of its delivery drones after two of its models crashed at a testing facility in Oregon, according to a report by Bloomberg. The incident marks the latest setback for the e-commerce giant's Prime Air program, which aims to deliver around 500 million packages a year to customers by the end of the decade.

The crashes occurred in December, during rainy weather conditions, at Amazon's testing facility in Pendleton, Oregon. In a separate incident in September, drone operators employed by the company were testing how the drones would perform if one of their propellers failed, but accidentally launched two test flights at once, causing the drones to collide. The incidents have raised concerns about the safety and reliability of Amazon's drone delivery system.

In response to the crashes, Amazon has suspended drone deliveries in Texas and Arizona, where it has commercial drone operations, pending a software update to its drone fleet. The company has not provided a timeline for when testing will resume or when the software update will be completed. This is not the first time Amazon has faced setbacks with its drone program, which has been plagued by delays and the departure of key executives.

Last April, Amazon ended Prime Air drone delivery operations in California, although the company plans to expand its drone delivery tests overseas. Despite these challenges, Amazon remains committed to its drone delivery program, which it believes has the potential to significantly reduce delivery times and costs. The company has been testing its drones in various locations around the world, including the UK and Canada.

The pause in testing is a significant setback for Amazon, which has been investing heavily in its drone delivery program. The company has been working to develop a system that can safely and efficiently deliver packages to customers using drones. However, the crashes and subsequent suspension of testing highlight the challenges and risks associated with developing and deploying drone delivery technology.

The incident also raises questions about the regulatory framework governing drone delivery in the US. The Federal Aviation Administration (FAA) has been working to develop rules for commercial drone use, but the process has been slow and contentious. The crashes and Amazon's response will likely be closely watched by regulators and industry observers, who will be looking for signs of how the company plans to address safety concerns and ensure the safe operation of its drone fleet.

In the broader context, the pause in Amazon's drone testing highlights the challenges and complexities of developing and deploying autonomous delivery technology. While drones offer the potential for significant efficiency gains and cost savings, they also pose significant technical and regulatory challenges. As the industry continues to evolve, companies like Amazon will need to balance the need for innovation with the need for safety and reliability.