Drone Delivery Canada enters LOI with IDP Group
December 15, 2020 By Naomi Szeben
Drone Delivery Canada Corp. announced that, with the assistance of its sales agent Air Canada, it executed a non-binding LOI (Letter of Intent), effective December 14, with IDP Group Inc.
Under the terms of the LOI, the parties are cooperating to work towards a binding 10-year term definitive agreement. This will set out the terms and conditions respecting the company’s drone delivery solution using DDC’s Sparrow, Robin XL and Condor drones, DroneSpot depots, and the company’s patented and FLYTE system, in a Software as a Service (SaaS) model.
DDC will provide implementation and commissioning of the systems, training, technical support, ongoing managed services and remote monitoring from its Operations Control Centre in Vaughan, Ontario.
Anticipated projects on which the parties are focusing are for IDP to establish a commercial-scale drone depot and drone-specific third-party logistics (3PL) depot at its facility in Ontario, as well as multiple drone depots across the country, over the term of the agreement, with an initial focus of providing e-commerce solutions to remote Canadian Indigenous communities; and an expected subsequent plan for a complete national drone coverage solution; and to use the drone infrastructure to provide support to emergency services and response, fire, health, security, surveillance, as well to use DDC drones as a means of delivering commercial products to suburban and ultimately urban areas.
IDP is also interested in potentially incorporating DDC’s drone infrastructure into IDP’s SINA Building System that can provide temporary and long-term accommodations, institutional space as well as negative pressure mobile ICU and hospital solutions, with pre-qualification under the Canadian Federal Government’s Innovation Solutions Canada program. All operations will be conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorizations.
“We are pleased to be working with IDP towards a binding agreement for their innovative logistics solution for remote communities, e-commerce, emergency services, and healthcare applications. IDP’s vision for a very broad range of drone delivery applications fits perfectly with the wide-ranging capabilities and use cases that the DDC solution can address. Market response to our solution has been very favourable in Canada and internationally, and we are pleased with our ongoing progress and momentum,” said Michael Zahra, president and CEO of Drone Delivery Canada in a press release.
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