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China’s DJI launches first delivery drone globally as regulation changes intensify competition

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DJI, the world’s largest drone maker, officially launched its first delivery drone in the United States on Wednesday, joining an increasingly crowded market that already includes Amazon (AMZN) and South San Francisco startup Zipline.

The release of the FlyCart 30 (FC30) marks the Chinese company’s first foray into the delivery drone space outside of its home market. The company, which has more than 70% share of the drone market, differentiates itself by focusing on industrial use cases such as construction sites and mountainous areas, given its ability to carry heavy loads and operate in extreme weather conditions. I am trying to achieve this. .

“We are optimistic that the FlyCart 30 will become a reliable solution for air shipping, solving complex terrain and terminal transportation problems efficiently, economically, and most importantly, safely from the air. ,” said Christina Chan, senior director of corporate strategy at DJI. statement.

DJI Delivery Drone (DJI)DJI Delivery Drone (DJI)

DJI delivery drone. (DJI)

The FlyCart 30 can carry a payload of 60 to 70 pounds within a 10-mile radius. It uses a coaxial 4-axis, 8-blade multirotor configuration and can reach a maximum flight speed of 44 miles per hour. DJI says the retail price will be $42,000.

DJI’s launch comes amid increased interest in drone delivery due to regulatory changes. Flights have been primarily restricted by FAA regulations that require drone operators to fly their aircraft within sight of human visual observers, but the FAA has provided some exemptions in recent months that allow companies to operate their businesses. and expanded the delivery zone.

DJI has not yet received an exemption, but said the FC30 was built in anticipation of that rule change.

“That’s part of the reason we’ve been waiting to get into this space,” said Wayne Baker, director of stakeholder engagement at DJI. “We hope this will enable operations beyond the visual field. Our software and solutions are built to do so through DeliveryHub.”

DJI faces another hurdle in expanding its operations in the United States. In December 2021, the US government placed DJI on an investment blacklist due to its involvement in surveillance of Uyghurs in Xinjiang and its military ties. This blacklist does not prevent U.S. residents from purchasing or using DJI drones, but it does prohibit them from trading DJI stock. The Shenzhen-based company also cannot source parts from American companies.

Meanwhile, the FC30 has been in operation in China since August last year, allowing the company to test key use cases. DJI said the aircraft is being used to transport solar panels to solar power plants and pick up large amounts of trash in remote areas.

DJI drone (DJI)DJI drone (DJI)

DJI drone. (DJI)

Baker said construction zones will be an immediate focus for the company in the U.S., reducing its reliance on construction workers hauling heavy equipment.

“[The payload] The FC30 has the ability to integrate a hoist and does not even need to land, allowing it to be raised and lowered to roof and floor areas on the job site. ” he said. “We’re reducing the amount of time people have to go up and down, and we’re reducing the amount of time it takes to build.”

Baker added that the aircraft can withstand extreme weather conditions, allowing it to support crews during natural disasters. It operates in temperatures ranging from -4°F to 122°F and can withstand winds up to approximately 44 miles per hour.

Commercial drone delivery is steadily expanding in the United States as retailers turn to air options to meet last-mile delivery demands. According to McKinsey, worldwide deliveries will exceed 1 million units in 2023. However, until now the focus has been primarily on small packages.

Walmart announced Tuesday that it is partnering with Alphabet’s (GOOG) Wing and Zipline to expand air delivery to 1.8 million households in the Dallas-Fort Worth area.

The global 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 @Akiko Fujita.

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