Flytrex Drone-Based Delivery Services Rolling Out in the US, Raises $40M

Flytrex Drone-Based Delivery Services Rolling Out in the US, Raises $40M
Flytrex drone delivery services is an Israeli startup that is piloting a drone-based delivery service for consumers in the US. This drone deliver company has raised $40 million in funding.
Photo : Jack Guez/ Getty Images

Flytrex drone delivery services is an Israeli startup that is piloting a drone-based delivery service for suburban consumers in North Carolina with Walmart, Chilli's, and others.

Now, it has raised $40 million in funding to continue developing its hardware and software, as well as expand its strategic partnerships as it waits for regulatory approval to enlarge its service to even more markets in the United States.

Flytrex Drone Delivery

Whereas others, such as Amazon, are considering launching their own drone services like the Amazon's Prime Air, Flytrex says that its drone pilot in North Carolina is now the largest of its kind.

But it's only the beginning for Flytrex. The company has plans to expand its delivery service and fleet by having its drones recognized as commercial aircraft by the Federal Aviation Administration to offer it the maximum flexibility in how it can design and run its company in the long term.

According to Yariv Bash, Flytrex's co-founder, and CEO, "We estimate that we'll have national approval by the first half of next year, We are in the process with the FAA, which we started more than a year ago."

The UAS Integration Pilot Program (IPP) (UAS: unmanned aircraft system, which includes drones) was the first part of its efforts, which ended in October 2020.

Now, it's continuing with another venture and working with the North Carolina Department of Transportation "to help tackle the remaining challenges of UAS integration", as reported by TechCrunch.

Expansion Plans

Flytrex is now licensed to fly in North Carolina for a distance of one nautical mile.

However, the company's aircraft have a range of three miles for each route, so that will be part of what it plans to provide in the future.

This is a Series C round, bringing Flytrex's total funding to $60 million. OurCrowd the SoftBank-backed, Israel-based crowdfunded investor; Lukasz Gadowski; and existing investors Benhamou Global Ventures (BGV), btov, and BackBone Ventures all participated in the round.

Furthermore, in a roster dominated by financial backers, there is one significant name worth noting: Gadowski is the founder and chairman of Delivery Hero, a major participant in online food delivery employing land-based logistics around the globe.

Although Delivery Hero is not currently collaborating with Flytrex, Bash believes that existing on-demand delivery platforms, such as DoorDash, Delivery Hero, and others could be potential partners and clients in the future.

For example, if established delivery brands want to supplement their own fleets with an air-based mode, they could connect with Flytrex instead of establishing it themselves.

Read Also: Why Is Delivery Service App Development Vital For Your Business? 

Drone Base Delivery in The US

To date, it appears that the early version of the program has found eager clients on both sides of the marketplace.

The first Flytrex drone delivery service was launched in Reykjavik, Iceland in 2017, but the first U.S. pilot began in September 2020 in Fayetteville, North Carolina, and has since expanded to a second location, Raeford, North Carolina.

Flytrex claims that the volume of orders has increased more than tenfold since February 2021, with thousands of deliveries to date.

Beyond these specific firms, there is a lot of doubt about everything that has to do with autonomous transportation.

And, if huge firms like Amazon are going to get into the field, it's critical that there are alternatives and choices for individuals who don't want to go the Amazon path.

 

Related Article: DJI Mavic 3: Best Consumer Drone With New Camera System, Includes Two Lenses

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