Move over Amazon, because it looks like another company is getting things started with drone deliveries.
Drone Delivery Canada (DDC) has signed a commercial agreement with Moose Cree First Nation worth $2.5 million that will see the Toronto-based DDC deploy their platform and services within two remote northern communities in Ontario. The drones will be able to carry a five-kilogram payload, typically consisting of parcels, letters, medical supplies or other general necessities as need be.
DDC is currently permitted to commercially operate their delivery platform within Moosonee and Moose Factory. The company’s Compliant Special Flight Operations Certificate (SFOC) actually allows them to operate in each province and territory, though these two communities will be the first to work with DDC. Moosonee and Moose Factory lie on Moose River, close to the most southern tip of Hudson Bay.
“This agreement is representative of the large ‘Remote Communities’ market that we see penetrating over the next three to five years,” said Tony Di Benedetto, CEO of DDC. “The Remote Communities market is only one segment of the overall total addressable market in Canada. In addition to Canada, DDC is working with other customers around the globe to licence our FLYTE software and drone delivery technology.”
The agreement is for $2.5 million of revenue in year one with the potential to expand services beyond 2019. Revenue will be received in the second quarter of 2019 while Moose Cree waits to receive their own funding from the Government of Canada.
“Where infrastructure is weak, or at times non-existent or accessible, DDC’s drone delivery platform is a valuable solution to connect remote communities and provide fast and efficient deliveries that were once not possible,” said Stan Kapashesit, director of economic development at Moose Cree First Nation.
With over a thousand remote communities spread all around Canada, DDC has a chance to scale up their platform if this run with Moose Cree is successful. Infrastructure problems and a shortage of supplies often result in a high cost of living for these communities, so access through delivery drone could begin to have a large effect on the overall quality of life in these areas.