New Mobility Startup: Zipline International

Zipline International, formerly Rotomotive, is an automated logistics company that designs, manufactures, and operates drones to deliver vital medical products all over the world. The company was founded by Keller Rinaudo, Keenan Wyrobek and William Hetzler after they graduated from Harvard University, with the goal of delivering medicine to impoverished countries. Since then it has expanded its mission and operations, labeling itself as “the world's fastest and most reliable delivery drone and...the world's largest autonomous logistics network.”  

Zipline designs and builds its drones in-house in cities throughout Northern California. The company designs and tests its technology in Half Moon Bay; the drones and technology that power its distribution centers are assembled in South San Francisco; and, extensive flight testing takes place in Davis, California.

International Operations
In 2016, the company opened its first African distribution center in Rwanda.  And, just this past April, the company opened its first distribution center in Ghana and said it plans to expand to cover most of the country's population.

U.S. Operations
The company is working with the United States Federal Aviation Administration (FAA) to draw up new nationwide regulations for drone flight deliveries in the U.S. A key part of this discussion is the development of guidelines for the operation of drones beyond the visual line of sight when over populated areas.

Zipline is also establishing its first few sites in the U.S, starting in Reno, Nevada. These domestic drones will serve as a viable way of providing medical logistics to rural areas of the U.S., where health is both poorer than the rest of the country and access more limited. The figure below provides an overview of the specific challenges over time that U.S. rural health care facilities and providers have faced, many of which are caused, or exacerbated by, the high costs of transporting medicines and medical supplies. Drones can substantially cut costs and provide supplies faster and more reliably than traditional motor vehicle means.

Finances

To date, Zipline has raised $43.6 million through a combination of crowdfunding, Series A, B, and C funding, convertible notes, and grants. Zipline’s 4 lead investors include Sequoia Capital, Visionnaire Ventura, Katalyst Ventures, and the UPS Foundation. Other notable private investors include Yahoo founder Jerry Yang, Microsoft co-founder Paul Allen, and Zappos' Alfred Lin.  As of early March, the company engaged in a Series D funding round and has raised $120 million to date.

Discussion on Finances

I am curious whether current investors are most interested in the company’s earnings potential from its domestic or international expansion, or both? Given that the research on, and discussion of, the many beneficial uses of drones has become more mainstream in the U.S., it seems significant that Zipline is a key player in helping the U.S. government form regulations on national drone activity.

If I were a potential investor in the company, I would be particularly interested in whether the company plans to corner the market of delivering medical services to rural areas in the U.S. Access to health care -- both cheaply and equitably -- is a key issue for 2020 presidential contenders and American voters. While the current political debate centers on policies like Medicare-for-All, the vital role of innovative technology in bringing down health care costs is one that is less often addressed in media circles.