Elsight’s Halo drone connectivity platform for BVLOS (Beyond Visual Line of Sight) drone operations has enjoyed a spectacular year of growth, and there’s more to come in 2023.

The company nabbed two milestone deals in 2022, with drone delivery company DroneUp and Air Methods’ wholly owned drone subsidiary, Spright, both of which opened up new market opportunities in retail and medical drone deliveries.

Elsight’s (ASX:ELS) Halo platform supports the DroneUp rollout and Spright’s innovative logistics solutions, by leveraging four major cellular networks, as well as satellites, to allow for safe and secure BVLOS drone operations.

And already the market opportunities for drone delivery across the retail and medical sectors are expanding, not only in the US, but potentially globally as well.

DroneUp delivery to 4 million US households

DroneUp were chosen by US Shopping giant Walmart to enable drone delivery of groceries and other supplies including Covid-19 test kits to US households earlier this year – and that partnership is set to expand.

And it’s proving popular with customers who can order more than 10,000 eligible items (with a weight limit of 10lb) which is then loaded into the drone and delivered right to their yard using a cable that gently lowers the package.

Walmart has recently expanded the service which is now available for customers in Arizona, Texas and Florida – following the retailers’ earlier announcement of plans to broaden its DroneUp network to reach four million households across six US states.

 Fast and secure supply chain

Enabling drone delivery in urban airspace also opens up endless possibilities for delivery of goods and commerce allowing retailers to join UAS companies and provide a fast and secure supply chain.

In fact, DroneUp were the first operator to use the FAA 107.39 waiver, an operation that allows for delivery flights to be conducted over people and moving vehicles.

Plus they are an authorized government drone services provider for 11 U.S. states serving public sector organizations and the deal with Walmart is expected to expand to offering local businesses and municipalities aerial drone solutions in areas like insurance, emergency response and real estate to add revenue and offset the cost of delivery.

Medical delivery business is booming

Elsight’s other major contract is with Spright, a division of Air Methods – the preferred partner for US hospitals and one of the largest community-based providers of air medical services, with nearly 40 years of air medical experience.

The company is working to solve gaps in access to healthcare by providing unique drone programs ensuring speed and efficiency for medical deliveries.

Spright placed their first commercial order with Elsight after signing a five-year agreement with the company towards the end of June.

Repeat orders are expected, because not only is Spright seeking to become the largest drone operator in the medical delivery space in North America, but they will also become an official Halo reseller in the United States.

This would substantially increase distribution opportunities in the region.

Urgent deliveries could save lives

And it goes beyond convenience, Spright offers streamlined and sustainable solutions to overcome the everyday challenges of inefficient ground operations.

With the use of drones, the company can perform medical delivery services for hospitals and labs that would normally be reliant on ground delivery and transportation.

Moving urgent supplies or blood samples could take hours or even days for a courier, but just minutes for a drone.

And as a  Guinness Enterprise Centre (GEC) Healthcare Innovator, Spright has the opportunity to bring real solutions to healthcare partners, offering quantifiable results in terms of speed and efficiency, to address the gaps in access and care in the sector.

This article was developed in collaboration with Elsight Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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