The race to launch and scale drone delivery is much like the race to put a man on the moon in the mid-twentieth century. Nations, including Canada, are pumping a lot of money into automated aerial delivery systems, which are set to replace traditional short-distance logistics, drop shipping, and fulfillment services. In the U.S., the Federal Aviation Administration approved UPS as an air carrier in October, making it the first national U.S. drone airline.
Big tech companies like Amazon and Alphabet have already launched test programs before expanding drone delivery services to more customers. In December, Amazon will launch a Prime Air drone program in select areas to identify common pitfalls and devise solutions before a full rollout. But, that isn’t where the success stops; also, in October, a Google affiliate, Wing, began testing drone-delivered packages in Christiansburg, Virginia.
Canadian investors should also take note of drone delivery testing in Canada.
Drone Delivery Canada revolutionizes Canadian logistics
The TSX has its drone delivery technology corporation, Drone Delivery Canada Corp (TSX:FLT), a venture-traded stock headquartered in Ontario. Since 2009, the company has been researching and developing commercial technology to transform Canadian logistics.
On Wednesday, Drone Delivery Canada announced a new partnership with Air Canada and the Edmonton International Airport to manage the first drone delivery service from an airport. A partner like Air Canada is big news for a stock with a market cap of $130 million, trading at $0.74 per share.
Air Canada will provide sales and marketing support for Drone Delivery Canada, which has boasted licensed air carrier status with Transport Canada since 2017. Edmonton will provide the infrastructure and storage for the drone fleet. Meanwhile, Transport Canada will have access to all the data from the drone flights to augment and refine Canada’s drone delivery policies.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Debra Ray has no position in any of the stocks mentioned. David Gardner owns shares of Alphabet (A shares), Alphabet (C shares), and Amazon. Tom Gardner owns shares of Alphabet (A shares), Alphabet (C shares), and Shopify. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Shopify, and Shopify.