Drone Delivery Canada signs $2.5M deal with Moose Cree First Nation
Moose Factory is located on Moose Factory Island, near the mouth of the Moose River, across which sits the mainland community of Moosonee. (Photo: Moose Cree First Nation)
Drone Delivery Canada reached a commercial agreement with the Moose Cree First Nation to deploy DDC’s drone delivery technology platform with the Moose Cree First Nation communities.
Drone Delivery Canada (DDC) is currently permitted to commercially operate its drone delivery platform within the Moosonee and Moose Factory communities, two northern towns located in Ontario approximately 19 kilometres south of James Bay.
The company is allowed to deploy this platform through a Compliant Special Flight Operations Certificate (SFOC), which permits DDC to conduct drone operations in all Canadian provinces and territories.
DDC plans to leverage its compliant Sparrow aircraft, which is capable of a 5-kg payload, to transport goods, such as letters, general parcels, medical supplies, and other general necessities, between the communities.
Financial terms of the agreement are $2.5 million of revenue for year one with the potential to expand services in following years. As previously anticipated, it is expected that revenues will begin to be received in the second quarter of 2019, after Federal funding is received by the Moose Cree First Nations.
“We are on track with the roll out of our commercial operations in Q2 of 2019,” said Tony Di Benedetto, CEO of Drone Delivery Canada. “This agreement is representative of the large Remote Communities market that we see penetrating over the next three to five years.”
Benedetto continued to explain that the Remote Communities market is only one segment of DDC's overall total addressable market in Canada. “DDC is working with other customers around the globe to licence our FLYTE software and drone delivery technology,” he said.
DDC notes, that in Canada, there are approximately 1,000 remote communities and most face similar infrastructure and logistics challenges that contribute to a high cost of living. DDC’s drone delivery platform aims to provide a cost effective logistic solution for these communities.
“We have worked closely with DDC for nearly two years and see the many benefits of DDC’s drone delivery technology to our community, as well as many others like us,” said Stan Kapashesit, Director of Economic Development Moose Cree First Nation. “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.”
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