Under the agreement, effective May 29, Air Canada Cargo will market and sell DDC’s drone delivery services in Canada using Air Canada Cargo’s marketing and sales platforms and resources.
The deal is pending DDC receiving all regulatory approvals.
Tony Di Benedetto, Drone Delivery Canada’s CEO, said the agreement would accelerate the company’s commercial rollout.
“Our drone delivery services will be extensively marketed as we work to establish operations across the country, leveraging Air Canada Cargo’s brand presence and their established sales network and marketing reach,” he said in the release.
“DDC will benefit from Air Canada’s Cargo’s expertise and ability to promote and sell DDC services through Air Canada Cargo’s industry-leading marketing and sales technology channels in Canada, which will support our efforts to establish DDC as Canada’s first national drone cargo solution. Next, DDC hopes to pursue even larger markets in the United States and Europe.”
DDC said it would build and operate up to 150,000 drone delivery routes in Canada, which would include timetables, flight schedules, payload capacities, type of drones to be deployed, and payment terms.
The company said Air Canada Cargo would market DDC’s services as a “premium offering,” and that “Air Canada Cargo has agreed that it shall not use or engage with any other drone delivery service providers.”
Tim Strauss, vice-president of cargo at Air Canada, called DDC a “leading player in today’s emerging drone industry.
“We believe drone technology has the potential to offer the cargo community cost-effective solutions to complex issues related to supply chain distribution in non-traditional markets, including remote communities in Canada,” Strauss said.
“It is another way Air Canada Cargo is innovating and engaging with new technologies, such as artificial intelligence and digital technologies, which are transforming the cargo landscape.”
Strauss is also an independent member of the advisory board of DDC.
The initial term of the agreement is 10 years.