6 major cargo drone deals of 2021

With the influx of investment in cargo operations and technology during the COVID-19 pandemic, cargo drone operators and startups are gaining momentum in fundraising and expanding existing operations with new and current customers. Ahead of the upcoming Air Cargo World webinar “ Airfreight’s new digital age: Technology trends in air cargo ,” on Sept. 14, we are revisiting some of the biggest cargo drone deals and investment rounds of 2021. 1. Dronamics selected as middle-mile drone partner for DHL [caption id="attachment_95246" align="alignright" width="424"] Dronamics will launch operations on behalf of Hellmann Logistics beginning in 2022. (Photo/Dronamics)[/caption] Dronamics’ decision to pivot its focus to operate cargo drones for airlines earlier this year has since paid off with two deals for the company. In July, DHL selected Dronamics as its middle-mile partner for same-day cargo drone deliveries using Dronamics’ infrastructure and its Black Swan drones. The company estimated the deal could generate 1.86 billion euros annually during its final operational stage, which is expected to include more than 4,000 cargo drones operating for DHL. Initial operations are planned for next year. The DHL announcement followed a June deal between Dronamics and Hellmann Worldwide Logistics , which will have Dronamics operating a middle-mile drone delivery network for Hellmann in Europe. Those operations are also expected to start in 2022. 2. California drone operator Zipline raises $250 million Medical drone delivery startup Zipline brought in a hefty $250 million in funding in June to expand its operations in Africa and the U.S. Zipline’s drone services in Ghana and Rwanda have seen an increase in demand for delivery of medicine and medical supplies to rural hospitals and clinics. The latest funding increased the startup’s valuation to $2.75 billion, which will help the company in its goals to build more hubs and warehouses in Africa, including in Nigeria, and to launch in the U.S. after it conducted a pilot program in North Carolina in 2020. 3. Drone Delivery Canada to conduct off-airport deliveries from YEG Drone Delivery Canada’s (DDC) 2019 plans to establish a hub at Edmonton International Airport (YEG) were brought to fruition with deals signed in July with YEG, Apple Express Courier Ltd. and Ziing Final Mile for deliveries from the airport to off-airport sites. The operations will use DDC’s Sparrow cargo drones and DroneSpot takeoff and landing zones to move a wide variety of cargo types. [caption id="attachment_96118" align="alignright" width="286"] Photo courtesy of Drone Delivery Canada.[/caption] DDC also recently extended its contract with DSV Canada for operations at DSV Canada’s Milton, Ontario, warehouse and head office. That project will soon be upgraded to DDC’s larger, in-development Robin XL drones once those become commercially available. 4. Drone startup Manna raises cash for US expansion Ireland-based drone startup Manna raised $25 million to help extend its operations and make inroads in the U.S. drone market. The funding was raised during the company’s series A round, led by venture capital firm Draper Esprit. Team Europe and existing investors Dynamo Ventures, Atlantic Bridge and Elkstone also participated in the funding round. Manna is currently trialing its drone delivery service for food, groceries and pharmacy goods in Galway, Ireland, with plans to launch a U.S. test this year. 5. SF Express taps Pipistrel to develop VTOL cargo drone Chinese express operator SF Express has partnered with Pipistrel Aircraft and its UAV software engineering affiliate Amazilia Aerospace for development of an unmanned vertical takeoff and landing (VTOL) cargo drone. The VTOL drones are expected to have larger payload capacities and ranges, of 300 kilograms and 500 kilometers, respectively, although development is still early. SF Express hasn’t clarified the expected scope of the deal, but said it expects to need more than 1,000 drones within the next decade. 6. Flytrex poised to expand US operations with new funding [caption id="attachment_59904" align="alignright" width="319"] Photo/Flytrex [/caption] Israel-based drone startup Flytrex this year raised $8 million in its most recent funding round, for total funding of more than $20 million. Most of the recent funding was from existing investors, including California-based Benhamou Global Ventures and European venture capital fund Btov. Flytrex plans to use the funding to expand its operations in the U.S. In 2020, Flytrex operated U.S. pilot programs in North Carolina, making drone deliveries from a local Walmart, Starbucks and a Japanese restaurant to residential addresses nearby. The startup hopes to expand its services for retail and food delivery in the U.S. and is awaiting Federal Aviation Administration approval for its application to be recognized as an unmanned air carrier.

6 major cargo drone deals of 2021

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