China's DJI launches first delivery drone globally as regulatory shift spurs competition
DJI will go up against other firms racing to dominate the US drone delivery space, including Amazon, Walmart, Google, and startup Zipline.
DJI, the world’s largest drone maker, officially launched its first delivery drone in the US Wednesday, entering into an increasingly crowded market that already includes Amazon (AMZN) and South San Francisco startup Zipline.
The release of FlyCart 30 (FC30) marks the Chinese firm’s first foray into the delivery drone space outside of its home market. The company, which has over 70% of the market share in the drone market, is looking to differentiate itself by focusing on industrial use cases, including in construction sites and mountainous terrain, given its ability to carry a heavy payload and operate in extreme weather.
“We are optimistic that FlyCart 30 will become a trusted solution for aerial delivery, solving complex terrain and terminal transportation problems efficiently, economically, and most importantly, safely from the air,” Christina Zhang, senior director of corporate strategy at DJI, said in a statement.
The FlyCart 30 can carry a payload of 60 to 70 pounds within a 10-mile radius. It uses a coaxial four-axis, eight-blade multirotor configuration and can reach a maximum flight speed of 44 miles per hour. It will retail for $42,000, according to DJI.
DJI’s launch comes amid heightened interest in drone deliveries, spurred by shifting regulations. While flights have largely been limited by an FAA rule that requires drone operators to fly aircraft within sight of human visual observers, the agency has offered some waivers in recent months, allowing companies to scale operations and expand their delivery zones.
DJI has not received an exemption yet but said the FC30 had been built in anticipation of a change in that rule.
“That’s partly why we’ve waited to enter this space,” Wayne Baker, director of stakeholder engagement for DJI, said. “We're hoping that this is going to be beyond visual line of sight operations capable. It's built to be that way through DeliveryHub, our software solution.”
DJI faces other hurdles in expanding in the US. In December 2021, the US government put DJI on an investment blacklist, citing its involvement in the surveillance of Uyghurs in Xinjiang and its military ties. While the blacklist does not prevent US residents from buying or using DJI drones, it prohibits them from trading shares of DJI. The Shenzhen-based company is also unable to source parts from US companies.
In the meantime, FC30 has been operating in China since August of last year, enabling the company to test key use cases. The aircraft has been used to carry photovoltaic panels to solar farms and pick up large loads of trash in remote areas, according to DJI.
Baker said construction zones would be the most immediate focus for the company in the US, reducing reliance on construction crews to carry heavy equipment.
“[The payload] can be brought up and down at the worksite to that roof area or even that floor area because FC30 has the ability to integrate a hoist, so it doesn’t even have to land,” he said. “We’re reducing the amount of time that a person would have to go up and down ... and time it takes for construction.”
Baker added that the aircraft could also assist crews in natural disasters because of its ability to withstand extreme weather. It can operate in temperatures ranging from -4° to 122° F and withstand winds up to roughly 27 miles per hour.
Meet DJI’s first delivery drone - FlyCart 30
Overcome traditional transport challenges and start a new era of dynamic aerial delivery with large payload capacity, long operation range, high reliability, and intelligent features.
Discover more: https://t.co/Mp6MOVaapJ pic.twitter.com/AZgHgLo9OA— DJI (@DJIGlobal) January 10, 2024
Commercial drone deliveries have steadily expanded in the US, as retailers turn to aerial options to meet last-mile delivery demands. Globally, deliveries exceeded 1 million in 2023, according to McKinsey. But the focus has largely been on small packages until now.
On Tuesday, Walmart announced it would expand aerial delivery to 1.8 million households in the Dallas-Fort Worth area, in partnership with Alphabet’s (GOOG) Wing and Zipline.
Globally, the commercial drone market is expected to reach $38.2 billion in 2027.
Akiko Fujita is an anchor and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita.
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