Drone Delivery Canada

Canada-based Volatus Aerospace provides drone services and merged with Drone Delivery Canada (DDC) in August 2024, with Volatus becoming a wholly-owned subsidiary of DDC. The combined company was named Volatus Aerospace, leveraging the Volatus brand while maintaining DDC's brand for cargo operations. DDC offers drone-based solutions for government agencies as well as industrial and commercial customers for applications including medical supplies deliveries, airport logistics, mining, and oil and gas applications.

The company’s drone portfolio includes two drone models, namely, 1) “Sparrow,” which can travel at a maximum speed of 37.2 mph, carrying a maximum payload of 8.8 lbs, covering a 12.4-mile range, and 2) “Canary,” which can travel at a maximum speed of 44.7 mph, carrying a maximum payload of 10 lbs, covering a 12.4-mile range. Both drone models use GPS-based navigation technologies and are powered by its proprietary “FLYTE” flight management system that facilitates automated, secure operations and real-time monitoring of commercial air traffic while managing weather and sensor data. It also offers drone takeoff and landing stations dubbed “DroneSpot.”

DCC offers its services to customers on a contract basis. The company’s operational focus includes multiple geographies such as Canada, the US, Kenya, and India. In July 2021, it received approval under the Canada Transportation Act (CTA) and Air Transport Regulations to conduct drone delivery services. It also received approval from Transport Canada for beyond visual-line-of-sight (BVLOS) cargo flight operations for its DroneCare project in September 2024.

Key customers and partnerships

DDC’s customers in Canada include Air Canada Cargo (a 10-year commercial agreement to offer services globally; 2019) and DSV Air & Sea Canada (for deliveries at its headquarters in Milton, Ontario; 2019). The company also operates a project called “Care by Air” in partnership with Halton Healthcare, McMaster University, DSV, Air Canada Cargo, and EllisDon for deliveries in Ontario (June 2022; commercial launch in November 2022).

The company has also partnered with Edmonton International Airport to use the airport as a drone delivery hub (October 2019). Its partners for international deployments include Astral Aerial Solutions (to tap Kenya; September 2020) and SE Drone Aviation (to tap India; November 2020). It also partnered with Volatus Aerospace in June 2024, to commercialize the latter's drone nesting station, “Volatus Aerieport.”

Funding and financials

DDC generated revenue of CAD 1.2 million (USD 0.88 million) and reported an operating loss of CAD 10.4 million (USD 7.6 million) in 2023.

DDC has been listed on the TSX Venture Exchange since 2016. In March 2023, it received a grant of up to USD 75,000 from the Downsview Aerospace Innovation and Research (DAIR) Green Fund, to support the operating costs attached to its Care by Air project, along with costs associated with obtaining regulatory approvals for beyond visual line of sight (BVLOS) operations.