Drones Can Play an Important Role In Getting Products Delivered During This Pandemic

 

“Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) is the one that appears to be two or three or four years ahead of the rest of the industry globally with what they’re doing.”

– Tim Strauss, VP of Cargo, Air Canada[1]

The current world pandemic is forcing the world to adjust.

Major sports leagues have postponed games and cancelled practices.

Conventions and events with over 250 attendees have been postponed.

Governments are urging people to stay home.

European countries, including Italy, Spain, and France, are on lockdown to slow the spread of the virus.

Consumers are stocking up on essentials to prepare for self-isolation.

Enter The Drones

In the face of this pandemic, drone delivery is proving it can help.

In China, state-sponsored drone delivery has been used during the pandemic for faster delivery of medical supplies and samples for analysis.[2]

Drone delivery promotes “contactless delivery”; it can also enable consumers to still get the supplies they need: food, baby formula, medication, and more.

Affordable new technologies have made this lightning-fast delivery method a reality with several major advantages… with faster and cheaper topping the list.

No surprise that giants like Amazon, Alphabet/Google and UPS are investing in drone delivery, or that the market is expected to grow to $7.13 billion at a CAGR of 19.9% through 2022.

What is a surprise is that one little-known Canadian company – Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) – is so far ahead of the competition and with the potential for big investor gains as they increase their market lead.

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First-Mover Advantage Combined with Market Leader

“With the high level of technical automation we have achieved with our drones, our patented FLYTE system and the operations center, we will lower operating costs, resulting in a high-margin business with predictable monthly re-occurring revenue.”
– Michael Zahra, President and CEO of DDC

The current pandemic is an ideal use-case for Drone Delivery Canada’s proven drone logistics solution to:  limit person-to-person contact; bring needed medical and pharmaceutical supplies to remote, rural and suburban communities; transport blood samples to laboratories for testing and deliver other relevant supplies needed for Canada to effectively manage the current situation. This is especially true for Aboriginal communities who live remotely and with an already stressed heathcare infrastructure and in many cases, underlying health issues.

Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) or DDC is the first of their kind in North America to achieve Compliant Operator status with a Federal Regulator – Transport Canada – and the only commercialized drone delivery service in Canada.

DDC was recognized in 2019 as a top TSX Venture 50 Company, ranking third in the Technology sector.

After investing 5 years developing their proprietary technology and making thousands of flights and tests, Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) has moved beyond the R&D phase and are now in commercial operations.  

They’re the first drone company in the world to sign a commercial agreement with a major carrier: a 10-year exclusive deal with Air Canada Cargo offering DDC’s drone delivery services to customers covering 150,000 routes in Canada.

Other signed agreements include Edmonton International Airport, DSV Canada, Vision Profile Extrusions, Napa Auto Parts, and Peel Region Paramedics.

Drone Delivery’s (TSXV:FLT) (OTC:TAKOF) fully functioning 16,000-square-foot commercial operations center is capable of managing, scheduling and routing for 1,500 drones on behalf of paying customers globally; making it the first of its kind.

DDC have also led the way in catching the attention of the media and potential clients across multiple sectors, including retail, healthcare, pharmaceuticals, oil & gas, Mining, agriculture, forestry, and government agencies, to name a few.

But Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) doesn’t only intend to dominate the Canadian market. They strategically developed their tech to accommodate international markets, so now they’re also focused on expanding their client base to the US and other countries.

More Progress and Upside Potential Than the Big Boys

While some of Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) “competitors” listed below have received FAA regulatory approval, they aren’t fully operating commercially in the US yet and they’re locked out of the Canadian market entirely.

DDC, meanwhile, is actively planning  on acquiring FAA approval with the help of their Director of Regulatory Affairs, USA (more on that later).

The table above shows how Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) has far greater room to realize big gains and market capitalization as it builds on its first-mover advantages as the only player approved in Canada.

Back in Q2 2019 Amazon said[3] it would use Prime Air drones to deliver packages to customers “within months”… but its official Prime Air webpage[4] still only features 3 videos: one from 2013, one from 2015, and the most current one being from December 2016.

Google’s parent company, Alphabet, developed Wing, which made its first commercial drone delivery[5] in October 2019. But even after spending years working to perfect a drone, they’re still operating on “a limited scale” and have yet to complete their software platform.[6]

United Parcel Service (UPS) gained full FAA approval[7] in October 2019. Yet the “next steps” they list include milestones Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) reached long ago, including construction of a control center and making frequent flights beyond the operator’s visual line of sight.

As for Uber Eats, they recently unveiled their food delivery drone design. As of October 2019, they’d only made a few test deliveries for a McDonald’s in San Diego.[8]

Still, the more these big boys spend on drone delivery R&D, the more likely it is that investors will notice this emerging market… and how Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) is leading the way.

Better yet, as the drone delivery market grows in value, it will only make Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) look more attractive as a buyout target for one of the big boys to scoop up.

Fully Funded and Healthy Sales Pipeline

Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) has raised $46.5M in capital to date.

That amount includes a recent bought deal financing that closed on March 25, 2019 for aggregate gross proceeds of $10.02M.

Not only is DDC fully funded to move their commercial operations forward, but investors will be interested to know they are currently in discussions with over 50 potential customers in Canada and internationally, from retailers, to cargo networks, hospital groups, couriers, logistic service providers, and more.

Rapidly Growing Market

Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) has targeted a very timely market.

Drone delivery is part of the air cargo market, which transports over US $6 trillion worth of goods.[9]

Drone delivery is also part of the Last Mile Delivery market, which is projected to register a 9.3% CAGR with the global market reaching US $47B by 2024.[10]
The global commercial drone delivery market, meanwhile, is expected to grow to $7.13B at a CAGR of 19.9% through 2022.

That growth is mainly driven by drone delivery lowering clients’ operating costs. According to a McKinsey report, if companies save 40% on delivery costs using drones, they will realize a 15-20% increase in profits.

As Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) helps make deliveries faster and less costly, it will only feed the growth of the commercial drone delivery market and increase the company’s attractiveness to investors. 

Agreement with Major International Carrier

In Q2 2019, Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) announced a major coup within the drone delivery market: a 10-year commercial agreement with Air Canada Cargo (ACC).

ACC agreed to exclusively market and sell DDC’s drone delivery services as a premium offering in Canada to customers covering 150,000 routes on a co-branded basis.
The partnership also represents the potential for DDC to expand to the US and Europe markets, with Air Canada Cargo currently serving over 185 destinations on 5 continents.

Tim Strauss, VP of Air Canada Cargo, even joined the Advisory Board at Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) in late 2018, giving investors yet another confirmation of how much ACC values DDC as a market leader.

Other Important Partnerships

The market has been watching as Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) continues to expand its client base over the last several months.

 DDC’s first paying commercial client, the prominent manufacturing company Vision Profile Extrusions Ltd, signed on in Q3 2019 (Air Canada Cargo acted as sales agent). Vision will pay a monthly fee per drone route.

In December 2019, Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) commercial project with the Moose Cree First Nation received the first conditional approval for one of its funding applications. DDC will service the northern Ontario towns of Moose Factory and Moosonee starting in Q1 2020. The project represents $2.5 million of revenue for year one with potential to expand services in following years.

As of March 4, 2020, DDC’s commercial agreement[11] with the world’s fourth largest freight forwarding company, DSV Canada, was well underway (Air Canada Cargo acted as sales agent). Fully operational and revenue-generating flights are expected to begin in March 2020 with DSV paying a monthly fee for each drone route deployed.

In Q4 2019, Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) entered a commercial agreement with Canada’s fifth-busiest airport by passenger traffic, Edmonton International Airport (Air Canada Cargo acted as sales agent). DDC will establish the world’s first airport drone delivery hub under the agreement’s 5-year initial term, with additional successive 1-year terms to follow.

This Under-the-Radar Stock is Canada’s First Federally Recognized Drone Service and it is Ready to Deliver! Get The Latest News About This Hot Stock Delivered Right to Your Inbox!

Multiple Market Segment Targets

Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) business model has the advantage of targeting diversified market segments.

In urban markets, DDC can provide clients with better point-to-point delivery of products and services.  

In remote rural areas, Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) services fill the gap where traditional roads and access are limited or overly expensive.

The ~1,000 remote communities in Canada represent a Total Addressable Market (TAM) of $2.5 billion.

Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) plans to penetrate 20% of that market within 3 to 5 years.

Multiple Types of Revenue

Another business advantage that investors and the market will like is that Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) has more than one type of revenue.

They first make money from installation and integration fees.

Then they make money from monthly recurring fees for operating and overseeing the drone delivery infrastructure they’ve set up.

DDC is Expanding Their Patents and IP

Instead of manufacturing drones, Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) created and operates a drone delivery platform that can work with any type of compliant drones or hardware.

On July 17, 2019, the US Patent Office granted Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) Patent #: 10,351,239, which covers their proprietary FLYTE management software system.

DDC has several other patents around their proprietary tech and they’re working on earning further patent protection for other aspects of their tech, both in the US and in other countries.

Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) is currently working with 4 different types of drones that represent various payload, distance and speed abilities.

Their Sparrow drone is fully compliant, has a range of 20-30 km (12-19 miles), an operating speed of 36 km/h (22 mph), and a payload capacity of 4.4 kg (10 lbs).

Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) is working on earning compliance designations in the near term for its 3 other drone models: Robin (11.3 kg/25 lb payload), Falcon (23 kg/50 lb payload) and Condor.

DDC recently started commercial testing of their massive Condor gas-powered drone, which boasts a range of 200 km (124 miles), speeds up to 120 km/h (75 mph), and a payload capacity of 180 kg (400 lbs).

There’s an “overwhelmingly strong” market response to the Condor, and Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) is already in discussions with various potential customers that have expressed strong interest in the drone once commercial testing in complete.[12]

That means investors should watch for Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) to likely be picking up new clients as they continue to expand their drone fleet’s range and capabilities.

Leadership Team Made up of the Smartest Minds in the Country

Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) team embodies the three types of leadership vital for their business to continue to dominate the market: business building, tech expertise and regulatory affairs.

Here a just a few of the key players.

Michael Zahra, CEO, was formerly President of Staples Business Advantage Canada for over 16 years and President of Yahoo! Inc. Canada. His 30+ years’ experience as a senior level leader and breadth of experience is exactly what a tech-driven logistics company needs at the helm, including an in-depth background in engineering, logistics, P&L management, and strategic planning and execution.

Paul Di Benedetto, Chief Technology Officer (CTO), leads Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) R&D, engineering, and technical operations. His 15+ years of technology architecture and engineering experience include co-founding a number of successful tech companies in the Canadian marketplace, including Data Centers Canada, a co-location services provider with over 25,000 global customers.

Mark Wunnenberg, Vice President of Regulatory Affairs, is indispensable to Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) regulatory compliance. Most recently, he was a Civil Aviation Inspector with Transport Canada responsible for the development of the regulatory framework for the Unmanned Aircraft Systems (UAS) industry. He has also served on UAV committees within ICAO, NATO, and the US Department of Defense.

Jim Williams, Director of Regulatory Affairs, USA, represents a major advantage for DDC in navigating America’s regulatory waters. His 30+ years’ of experience in the Aerospace sector includes recently serving as Manager of the FAA’s Unmanned Aircraft Systems (UAS) Integration Office at the FAA, and working for NASA in Mission Control during the initial flights of the US Space Shuttle.

7 Reasons

to expect Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) will build on its market dominance while returning near-term gains to investors

1

MAJOR FIRST MOVER AND MARKET LEADER ADVANTAGES:

DDC is the only commercialized drone delivery service in Canada and has a fully functioning commercial operations center.

2

MORE PROGRESS AND UPSIDE POTENTIAL THAN THE BIG BOYS:

Amazon, Alphabet/Google and UPS aren’t approved to operate in Canada, aren’t fully commercialized in the US, and are only now working on milestones Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF) completed long ago.

3

FULLY FUNDED, HEALTHY SALES PIPELINE & RAPIDLY GROWING MARKET:

DDC has raised $46.5M and are in discussions with over 50 potential customers, while the global commercial drone delivery market is expected to grow to $7.13B at a CAGR of 19.9% through 2022.

4

EXCLUSIVE AGREEMENT WITH MAJOR INTERNATIONAL CARRIER:

DDC’s 10-year sales agent agreement with Air Canada Cargo is a major coup within the drone delivery market and has already brought multiple clients to Drone Delivery Canada (TSXV:FLT) (OTC:TAKOF).

5

MULTIPLE CLIENTS, MARKET SEGMENT TARGETS & TYPES OF REVENUE:

DDC has clients across various sectors, urban and rural market service targets, and set-up and recurring revenue streams.

6

EXPANDING ON PATENTS AND IP:

DDC has a patented software platform, several other tech patents, and are expanding their drones’ capabilities to meet “overwhelmingly strong” market response.

7

LEADERSHIP TEAM MADE UP OF THE SMARTEST MINDS IN THE COUNTRY:

Experts in business building, tech and regulatory affairs have come together to expand on Drone Delivery Canada’s (TSXV:FLT) (OTC:TAKOF) market dominance.

This Under-the-Radar Stock is Canada’s First Federally Recognized Drone Service and it is Ready to Deliver! Get The Latest News About This Hot Stock Delivered Right to Your Inbox!

Please See Disclaimer

[1] https://dronedeliverycanada.com/
[2] https://www.thenational.ae/business/comment/coronavirus-social-distancing-puts-the-future-of-drone-delivery-to-the-test-1.991606
[3] https://www.bbc.com/news/technology-48536319
[4] https://www.amazon.com/Amazon-Prime-Air/b?ie=UTF8&node=8037720011
[5] https://www.cnbc.com/2019/10/18/alphabets-wing-launches-first-commercial-drone-delivery.html
[6] https://www.cnbc.com/2019/10/18/alphabets-wing-launches-first-commercial-drone-delivery.html
[7] https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&id=1569933965476-404
[8] https://www.forbes.com/sites/bizcarson/2019/10/28/first-look-uber-unveils-new-design-for-uber-eats-delivery-drone/#5aa2fb2678f2
[9] https://www.iata.org/en/programs/cargo/sustainability/benefits/
[10] https://www.industryresearch.co/global-last-mile-delivery-market-13763933
[11] https://dronedeliverycanada.com/resources/drone-delivery-canada-announces-commercial-agreement-with-dsv-canada/
[12] https://dronedeliverycanada.com/resources/drone-delivery-canada-announces-commercial-testing-to-start-for-its-heavy-lift-long-range-cargo-delivery-drone-the-condor/

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