how drone delivery is disrupting the supply...
TRANSCRIPT
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PRESENTATION TITLE
Presented by:
Matt Sweeny - CEO Flirtey
How Drone
Delivery is
Disrupting the
Supply Chain
© 2017 MHI®
Copyright claimed for audiovisual works and
sound recordings of seminar sessions. All rights reserved.
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• The internet revolution enabled instant gratification for the ordering of goods
• Drone technology today is where personal computing technology was in the 1980s
• The drone revolution will enable instant gratification for the delivery of goods
Flirtey is the world’s leading drone delivery service
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Flirtey is the world’s leading drone delivery service
July 2015
First FAA-approved drone
delivery in collaboration
with NASA Langley
June 2016
First ship-to-shore drone
delivery in partnership
with Johns Hopkins
October 2016
Partnership launched
with Domino’s in New
Zealand
July 2016
First commercial
delivery to customer
home in U.S.
November 2016
Largest commercial
drone delivery trial to-
date with 7-Eleven
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Problems and shifting market conditions
Tech-savvy millennial
consumer base
Increasing gas and
labor costs
Growth of the on-demand
economy
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The last mile of the supply chain is expensive
• The last mile accounts for up to 40% of supply chain costs
• UPS estimates that it can save $50 million by eliminating one mile along its routes
• Ground shipping rates have increased 77.2% in the last decade
$5.75 $5.85 $6.15 $6.62 $7.04 $7.62 $8.04
$8.64 $9.14
$9.71 $10.19
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Ground Shipping Price Year-to-Year
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Yet, e-commerce is growing and consumers are
demanding speedier delivery
69%
31%
-20%
0%
20% On-Line/Mobile
In-Store
Last year, online and mobile sales increased ~15% whereas
in-store sales fell ~10%
69% of consumers say one-day shipping would make them more likely to buy on-line
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Flirtey is the solution
Food and Convenience
Intra-business and B2B
Medical and Humanitarian
Retail and E-Commerce
Courier and Parcel
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How Flirtey works
50 ft delivery altitude
Lowers package
to consumer
Flirtey flies autonomously
to consumer
Flirtey returns to
vendor
Package loaded
on drone
Drone located at
vendor store
100 ft cruise altitude
Flirtey operates the service - Operates network of drones
General liability insurance
Regulatory approvals
Maintenance
Flight plans
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Flirtey is faster
On-Demand Delivery Service(E.g. Postmates)
In-House Delivery Flirtey
<10:00
30:00
(up to 60:00 urban)
20:00
Flirtey is 4x faster than the
average on-demand delivery
service.
Every minute saved leads to better
customer experience.
This is a game changer for the
delivery industry.
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Flirtey becomes increasingly cost effective over time
• Multiple drones to pilot (low labor cost per delivery)
• Hardware and equipment costs are commoditized
• Smaller, more frequent orders 2 3 6
12 18
24 30
36 42
48 54
60
1 to 3 1 to 2 1 to 1 2 to 1 3 to 1 4 to 1 5 to 1 6 to 1 7 to 1 8 to 1 9 to 1 10 to 1
Drone to Pilot Ratio
Deliveries p
er P
ilot p
er H
ou
r
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Flirtey has overcome the regulatory hurdle
Unrestricted Operations (flights near airports, at scale operations)
Extended Line of Sight (flights beyond one mile)
Operations over People (flights over suburban areas)
Commercial Operations (over unpopulated areas, within one mile) Now: Flirtey Only Now: Nationwide
2017
2018
2019
United States:
Now: Flirtey Only
Now: Flirtey Only
Now: Flirtey Only
New Zealand:
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Our customers love our service
Drone delivery is the ultimate convenience
for our customers and these efforts create
enormous opportunities to redefine
convenience.
- Jesus Delgado
Executive VP at 7-Eleven
Partnering with Flirtey to revolutionize the
delivery experience is an achievement that will
set our company apart in the minds of
customers and change the way delivery is
conducted around the world.
- Don Meij
Group CEO at Domino’s
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Consumers love Flirtey
92%
8% ExtremelySatisfied
100% Customers would use Flirtey’s drone delivery service again
Overall Satisfaction with Flirtey’s Service
4 in 5 consumers more likely to buy from store that offers drone delivery
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Drone delivery is a game changer
“30,000 UAVs will fill the skies in less than 20 years”
~ The U.S. Federal Aviation Administration, Forecast, 2011
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Drone delivery is a game changer
“I think there is a world market for maybe five computers”
~ Thomas Watson, Chairman of IBM, 1943
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Drone delivery is a game changer
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Drone delivery is a game changer
• The FAA now predicts 7,000,000 drones registered by 2020
• PwC estimates the commercial drone market will be worth
$127 billion by 2020
• McKinsey & Co. predicts that 80% of parcels will be
delivered by autonomous vehicles in the next 10 years
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Flirtey will help to create winners and losers
• Drone delivery is the future of
the on-demand economy
• Extremely high barriers to entry
• Years of development required,
affording our partners multi-year
head start over competitors
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The value of drone delivery
• Increase sales
• Reduce costs
• Differentiate brand
• Improve customer experience
• Mitigate competitive risks
• Future-proof your supply chain
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• In 1978 Kodak patented the first digital camera
• Kodak’s marketing department was not interested because it would eat away at the company’s film sales
• Kodak is now bankrupt
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Don’t let drone delivery be
your Kodak moment
Embrace the future
by partnering with Flirtey
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For More Information:
Speaker email: [email protected]
Website: www.flirtey.com
Or visit ProMat Booth: N1130