Delivery company SF Holding has obtained a landmark license from the military authorities to use drones to deliver commercial packages and is showcasing the country’s first drone pilot demonstration zone in the city of Ganzhou in Jiangxi province. SF said it has launched several types of drones for delivery services, with a maximum load capacity of 25 kilograms and flying distance of 100 kilometers. SF has invested in a smart distribution logistics and drone delivery system, and has taken out 151 patents. It has established a specialized drone R&D and business operations system. Zhao Xiaomin, a logistics market consultant in Shanghai, said SF will expand its drone delivery services to third and fourth-tier cities, and some undeveloped and remote regions. JD.com, China’s second biggest e-commerce player, has also been developing drone deliveries to meet the rising retail demand in China’s rural areas. On June 18 it began using drones to regularly deliver packages in Xian. JD also said it will build 150 operation sites for drone delivery in Sichuan to help reduce freight costs by 70%. Pan Xuefei, Senior Analyst at market research firm IDC, said drones were mainly used to improve delivery efficiency in remote mountainous areas and sparsely populated areas, the China Daily reports.