Amazon Cleared For Drone Delivery Tests

The Federal Aviation Administration approved Amazon.com, Inc.'s (NASDAQ: AMZN) request to test package delivery by drone. Amazon will be able to use its drones outdoors in rural Washington, as long as the drone's operator is within sight of the drone itself.

Shares of Amazon indicated 0.7 percent higher in Friday's premarket.

According to the approval, Amazon is only allowed to operate one prototype of drone and keep flights below 400 feet. The company had asked for the drone to fly as high as 500 feet, according to a Reuters report.

Amazon had previously been testing its drones in an indoor facility.