This report investigates the role of drones as part of the future transport mix. It specifically addresses the issues policy makers face in engaging with the emerging private drone sector. Drones have the potential to improve existing practices, for instance in the surveying of infrastructure. They also have innovative uses in areas such as freight delivery, passenger transport in both urban and rural areas, or in disaster relief. With the sector developing at a rapid pace, regulators will want to create frameworks for drone use that allow innovation while ensuring positive overall outcomes.