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Drone Delivery Canada (DDC) Corp. has announced that with the assistance of its sales agent Air Canada, it has entered into a commercial agreement dated Oct. 22, 2019, with DSV Air & Sea Inc. Canada, the Canadian arm of the global transport and logistics company DSV Panalpina A/S, to deploy DDC’s drone delivery platform for the use of DSV commencing at its new head office and warehouse in Milton, Ontario.
Pursuant to the terms of the agreement, DDC will enable the first of multiple routes and deploy its DroneSpot takeoff and landing zones as well as additional drone flight infrastructure on DSV sites, and deploy its Sparrow cargo drone, with a capacity of up to 10 pounds. The first route will occur on a defined flight route within DSV’s site in Milton.
All operations will be conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorizations. Flights will be remotely monitored by DDC from its new commercial operations center located in Vaughan, Ontario. DDC will commence deployment of the client site infrastructure this quarter and looks to begin providing drone delivery services under the agreement in Q1 of 2020, with the potential of 20 or more additional routes being added in 2020.
“We are pleased to announce DSV Canada as another paid commercial drone logistics customer. DSV is a global leader in the logistics space and a perfect fit as a scalable customer for us,” said Michael Zahra, president and CEO of DDC. “They will start using our proven Sparrow drone, patented FLYTE system, and newly launched commercial operations center in early 2020. I am pleased to report we have a very strong funnel of global commercial opportunities and we expect to see continued sales announcements in 2019 for deployment in early 2020.”
DSV will pay DDC a monthly fee for each drone route deployed. The initial term of the agreement is fifteen months with additional successive one-year terms to follow unless the agreement is formally terminated.
“DSV Canada is dedicated to delivering innovative and integrated supply chain solutions,” said Martin Roos, managing director of DSV Air & Sea Canada. “With a global view in mind, our focus is on continuously optimizing our local partners’ supply chains. That means, a long-term vision that opens up new markets and service offerings. Our strong partnership with Air Canada Cargo and now DDC will offer our current and potential partners best-in-class solutions and service excellence that is scalable and futureproof. We have looked to overcome some of today’s challenges by investing in tomorrow’s opportunities, and we are ready for the next steps.”