The drone-based delivery provider SkyDrop (formerly known as Flirtey) has filed for Chapter 7 bankruptcy following a challenging period of financial difficulties and extensive efforts to find sustainable solutions.

Over the past six months, SkyDrop's board has explored various strategies to save the company, including proposing to open-source its technology to generate revenue in the future. Unfortunately, these efforts have been insufficient to prevent the company's closure.

The bankruptcy filing follows a noteworthy achievement in July 2023, when SkyDrop completed the first Civil Aviation Authority (CAA)-approved store-to-door drone delivery in New Zealand, delivering packages for Domino’s and FedEx.

Analyst QuickTake: While today's news highlights the end of SkyDrop's operational journey, the company's legacy includes significant milestones, such as achieving the first FAA-approved drone delivery in the US in July 2016 and receiving approval from New Zealand’s CAA to launch drone-based delivery services in the country in April 2023 —the first to obtain the approval in New Zealand.