We could see far more drones flying overhead. Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) are reportedly using them to drop off product. In fact, Walmart is delivering groceries, household items, and even pandemic test kits. The Federal Aviation Administration (FAA) even cleared Amazon to make deliveries using drones. Now, even Pizza Hut wants to deliver your pie in the sky with drones.
“Pizza Hut Israel is trying a new approach to make pie deliveries by drone a reality at last, but it means customers won’t get the thrill of accepting their orders from futuristic flying machines themselves,” reported The Wall Street Journal.
In short, drone technology is gaining traction, as a potential way for companies, even hospitals to make quicker deliveries. After all, there’s a growing need – especially with the pandemic limiting in-person contact. Plus, there’s a need for faster delivery systems worldwide with some folks demanding same day delivery and even next-hour services. “Drones now are at a place where I think that technology represents a huge opportunity,” says Tom Ward, Walmart’s senior vice president of consumer products, as quoted by CNBC.
That’s a Strong Catalyst for Drone Delivery Canada (TSXV:FLT)(OTC:TAKOF)
Drone Delivery Canada just announced its support for the Federal Aviation Administration’s (FAA) progressive actions in making amendments to advance the use of Unmanned Aircraft Systems (UAS) for logistics and small package delivery.
Use of drones in this market segment is forecast to increase significantly, according to a report released by the FAA recently. In their January 2021 report, ‘Aerospace Forecast 2020 – 2040’, the FAA highlights substantial expected growth in both the small UAS category (less than 55 pounds maximum take-off weight) and the larger UAS category (a maximum take-off weight of more than 55 pounds).
The FAA report directly highlighted:
- Continued strong growth of small commercial drones over the next 5 years, forecast change in the number of units in this category could be as much as 210% by 2024, when compared to 2019 figures.
- Professional grade commercial UAS is forecast to expand rapidly over time, especially as newer and more sophisticated uses are identified, designed, and operated.
- Approval of drones to enter the supply chain via small package delivery could result in growth that ‘…will likely be phenomenal’.
- Flights operated by larger UAS will double by 2024 versus 2019 levels.
- The Report also states: “By 2030 ‘last mile package delivery’ … may result in around 500 million deliveries annually with a fleet of 40,000”.
In December 2020, the FAA also issued a press release with respect to ‘Remote ID’ and ‘Operations Over People and at Night’ further advancing the industry. The Company also sees this as a positive catalyst in support of the UAS industry and applications DDC is specifically considering.
In July 2020, DDC announced it had started the process to enter the US market.
“In January 2021, the FAA added new rules to 14 CFR Part 107 to permit the expansion of routine flights and created four categories of UAS for flights over suburban/urban areas assuming certain, specific criteria are met. These new rules greatly improve the regulatory certainty for UAS delivery operations in the United States and represent a significant step forward toward UAS integration into the US airspace. This FAA report further enables DDC on its path to US operations and the requirements needed. As a global leader in the drone delivery industry, DDC has been anticipating these new regulations and we are well positioned to fully capitalize on them,” said Steve Bogie, Vice President – Flight Operations & Technology at DDC.
Alphabet and UPS are Also Involved with Drone Delivery
In 2019, Alphabet Inc. (NASDAQ:GOOG) drone delivery company, Wing launched its first commercial delivery. It was also the first delivery firm to win FAA approval in the U.S., according to CNBC. Even United Parcel Service Inc. (NYSE:UPS) just partnered with Verizon to deliver retail products by drone, too.
According to PYMNTS.com, “UPS said it has made more than 3,800 drone delivery flights since it created its drone unit, UPS Flight Forward, in 2019. The service gained further traction during the pandemic by being able to provide rapid and contactless home delivery to older customers who were at high risk of developing severe CV-19.”
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