Podcast
Questions and Answers
What was the primary reason Zipline transitioned from a per-flight pricing model to a fixed monthly fee model in Rwanda?
What was the primary reason Zipline transitioned from a per-flight pricing model to a fixed monthly fee model in Rwanda?
- To decrease the number of flights per distribution center.
- To encourage doctors to stop using the service.
- To increase the cost for each delivery.
- To simplify invoicing and avoid lengthy value analyses for each new medical product. (correct)
Zipline's drones, referred to as 'Zips,' are assembled in Rwanda.
Zipline's drones, referred to as 'Zips,' are assembled in Rwanda.
False (B)
What is the approximate range of Zipline's drones ('Zips') in miles?
What is the approximate range of Zipline's drones ('Zips') in miles?
93
Zipline's drones could carry about 3.3 pounds of supplies, roughly three units of ______.
Zipline's drones could carry about 3.3 pounds of supplies, roughly three units of ______.
What aspect of Zipline's initial drone design reassured Paul Willard, leading him to invest?
What aspect of Zipline's initial drone design reassured Paul Willard, leading him to invest?
Match the following components with their description within Zipline's drone technology:
Match the following components with their description within Zipline's drone technology:
Which of the following best describes Zipline's pricing strategy relative to other ground-based delivery services?
Which of the following best describes Zipline's pricing strategy relative to other ground-based delivery services?
The UPS Foundation provided Zipline with funding primarily to improve UPS's existing delivery infrastructure in the United States.
The UPS Foundation provided Zipline with funding primarily to improve UPS's existing delivery infrastructure in the United States.
Zipline bills each individual health facility for their deliveries every month.
Zipline bills each individual health facility for their deliveries every month.
According to Rinaudo, what advantage do developing economies have over developed economies in terms of adopting new technologies like drone delivery?
According to Rinaudo, what advantage do developing economies have over developed economies in terms of adopting new technologies like drone delivery?
Zipline initially planned to build and test drones in California, while commencing operations in ______.
Zipline initially planned to build and test drones in California, while commencing operations in ______.
What is the weight of a Zipline drone (Zip) in pounds?
What is the weight of a Zipline drone (Zip) in pounds?
Match the entity with its primary role or contribution to Zipline's development:
Match the entity with its primary role or contribution to Zipline's development:
Why did most investors initially think launching in Rwanda was a crazy idea?
Why did most investors initially think launching in Rwanda was a crazy idea?
Zipline's management team was confident that customers would immediately embrace the idea of receiving packages via parachute.
Zipline's management team was confident that customers would immediately embrace the idea of receiving packages via parachute.
What was the ultimate goal of the partnership between Gavi, the Vaccine Alliance, and The Bill and Melinda Gates Foundation?
What was the ultimate goal of the partnership between Gavi, the Vaccine Alliance, and The Bill and Melinda Gates Foundation?
Which of the following best describes Zipline's initial business model before pivoting to drone delivery?
Which of the following best describes Zipline's initial business model before pivoting to drone delivery?
Zipline's Series A funding was primarily led by Katalyst Ventures.
Zipline's Series A funding was primarily led by Katalyst Ventures.
In what year did Zipline begin its operations in Rwanda?
In what year did Zipline begin its operations in Rwanda?
By 2019, Zipline had signed a $12.5 million contract in ______.
By 2019, Zipline had signed a $12.5 million contract in ______.
Match the funding round with its lead investor:
Match the funding round with its lead investor:
How did the UPS Foundation and Gavi contribute to Zipline's early growth?
How did the UPS Foundation and Gavi contribute to Zipline's early growth?
By September 2020, Zipline's delivery network had reached over 5,000 locations.
By September 2020, Zipline's delivery network had reached over 5,000 locations.
Approximately how many employees did Zipline have by September 2020?
Approximately how many employees did Zipline have by September 2020?
The Rise Fund led Zipline's Series D funding round, giving Zipline a valuation of $ ______ billion.
The Rise Fund led Zipline's Series D funding round, giving Zipline a valuation of $ ______ billion.
In which U.S. state did Zipline launch operations by September 2020?
In which U.S. state did Zipline launch operations by September 2020?
In 2018, approximately what percentage of Rwanda's intercity blood supply was serviced by Zipline?
In 2018, approximately what percentage of Rwanda's intercity blood supply was serviced by Zipline?
Zipline's expansion to Ghana involved establishing a completely separate healthcare supply chain, independent of the existing Ghanaian health system.
Zipline's expansion to Ghana involved establishing a completely separate healthcare supply chain, independent of the existing Ghanaian health system.
What was the approximate valuation of Zipline after raising an additional $70 million in funding?
What was the approximate valuation of Zipline after raising an additional $70 million in funding?
The UPS Foundation awarded a grant to fund the upfront costs of launching Zipline's fulfillment centers in Ghana, with facilitation support from ______.
The UPS Foundation awarded a grant to fund the upfront costs of launching Zipline's fulfillment centers in Ghana, with facilitation support from ______.
Match the following organizations with their roles in Zipline's expansion.
Match the following organizations with their roles in Zipline's expansion.
What was the primary goal of the local Rwandan staff's policy regarding tours of the Zipline facility?
What was the primary goal of the local Rwandan staff's policy regarding tours of the Zipline facility?
Zipline exclusively delivers blood and vaccines.
Zipline exclusively delivers blood and vaccines.
Approximately how many distribution centers did Zipline open in Ghana?
Approximately how many distribution centers did Zipline open in Ghana?
What primary factor led Zipline to choose fixed-wing drones over quadcopter drones?
What primary factor led Zipline to choose fixed-wing drones over quadcopter drones?
Zipline initially anticipated purchasing off-the-shelf drones for their delivery service before deciding to custom-build their own.
Zipline initially anticipated purchasing off-the-shelf drones for their delivery service before deciding to custom-build their own.
What logistical challenge did Zipline face by choosing fixed-wing drones instead of quadcopter drones?
What logistical challenge did Zipline face by choosing fixed-wing drones instead of quadcopter drones?
Zipline's fixed-wing drones drop off packages via ______.
Zipline's fixed-wing drones drop off packages via ______.
Match the drone type with its characteristic:
Match the drone type with its characteristic:
What was a crucial factor that made flight in Rwanda challenging for drone operations, influencing design considerations?
What was a crucial factor that made flight in Rwanda challenging for drone operations, influencing design considerations?
The decision to use fixed-wing drones was immediately accepted by everyone on the Zipline team.
The decision to use fixed-wing drones was immediately accepted by everyone on the Zipline team.
According to Wyrobek, what benefit does Zipline gain if they achieve high flight volumes with their fixed-wing drones?
According to Wyrobek, what benefit does Zipline gain if they achieve high flight volumes with their fixed-wing drones?
A company needs a drone for frequent two-way deliveries between two closely located facilities. Considering cost and operational factors, which drone type would be the MOST suitable?
A company needs a drone for frequent two-way deliveries between two closely located facilities. Considering cost and operational factors, which drone type would be the MOST suitable?
Increasing the payload of a drone generally increases its battery life.
Increasing the payload of a drone generally increases its battery life.
What is a PRIMARY disadvantage of fixed-wing drones compared to quadcopter drones in urban delivery scenarios?
What is a PRIMARY disadvantage of fixed-wing drones compared to quadcopter drones in urban delivery scenarios?
For applications requiring the ability to hover, such as detailed inspections, a ______ drone is MOST suitable.
For applications requiring the ability to hover, such as detailed inspections, a ______ drone is MOST suitable.
Match the drone type with its typical application:
Match the drone type with its typical application:
Which type of drone is MOST capable of flying in harsh weather conditions?
Which type of drone is MOST capable of flying in harsh weather conditions?
Single-rotor drones are generally cheaper to purchase and operate than quadcopter drones.
Single-rotor drones are generally cheaper to purchase and operate than quadcopter drones.
What is a PRIMARY disadvantage of Fixed-wing VTOL hybrid drones when compared to standard Fixed-wing drones?
What is a PRIMARY disadvantage of Fixed-wing VTOL hybrid drones when compared to standard Fixed-wing drones?
A drone operator needs to survey a large agricultural field quickly and efficiently. The payload will consist of lightweight sensors. Which drone would be BEST suited for the job?
A drone operator needs to survey a large agricultural field quickly and efficiently. The payload will consist of lightweight sensors. Which drone would be BEST suited for the job?
A key trade-off between quadcopter and single-rotor drones involves payload capacity versus ______.
A key trade-off between quadcopter and single-rotor drones involves payload capacity versus ______.
Flashcards
Zipline
Zipline
Drone delivery service using autonomous aircraft for medical supplies.
Zipline's Impact in Rwanda
Zipline's Impact in Rwanda
Zipline was providing roughly 20% of Rwanda’s intercity blood supply.
Zipline Investors
Zipline Investors
Venture capital firms that invested in Zipline.
Zipline Expansion
Zipline Expansion
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Zipline in Ghana
Zipline in Ghana
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UPS Foundation Grant
UPS Foundation Grant
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Zipline Staff in Ghana
Zipline Staff in Ghana
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Zipline Products
Zipline Products
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Quadcopter Drone
Quadcopter Drone
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Fixed-Wing Drone
Fixed-Wing Drone
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Drone Range
Drone Range
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Drone Launcher
Drone Launcher
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Parachute Drop
Parachute Drop
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Flight Warranty
Flight Warranty
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Drone operational costs
Drone operational costs
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Design dilemma
Design dilemma
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Quadcopter
Quadcopter
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Single-rotor Drone
Single-rotor Drone
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Fixed-wing VTOL Hybrid
Fixed-wing VTOL Hybrid
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Aerial Photography/Video Use Case
Aerial Photography/Video Use Case
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Mapping/Long Distance Delivery
Mapping/Long Distance Delivery
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Laser Scanning/Short Delivery
Laser Scanning/Short Delivery
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Two-way Pickup and Delivery
Two-way Pickup and Delivery
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Payload vs. Battery life
Payload vs. Battery life
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Quadcopter Payload Capacity
Quadcopter Payload Capacity
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Zipline's Billing Process
Zipline's Billing Process
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Zipline's Pricing Model Evolution
Zipline's Pricing Model Evolution
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Zipline's "Unlimited" Plan
Zipline's "Unlimited" Plan
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Doctor's Preference for Zipline
Doctor's Preference for Zipline
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Zipline Drone Specs
Zipline Drone Specs
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Zipline Weather Capabilities
Zipline Weather Capabilities
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Zipline Drone Payload
Zipline Drone Payload
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Zipline's In-House Design
Zipline's In-House Design
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Zipline's initial delivery method concern?
Zipline's initial delivery method concern?
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Paul Willard's assessment of Zipline?
Paul Willard's assessment of Zipline?
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UPS Foundation's support for Zipline?
UPS Foundation's support for Zipline?
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What is Gavi, the Vaccine Alliance?
What is Gavi, the Vaccine Alliance?
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Zipline's dual location strategy?
Zipline's dual location strategy?
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Rinaudo's view on Africa's potential?
Rinaudo's view on Africa's potential?
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Investor reaction to Rwanda launch?
Investor reaction to Rwanda launch?
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Common preconception about technology rollout?
Common preconception about technology rollout?
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Zipline's original name?
Zipline's original name?
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Zipline's business pivot?
Zipline's business pivot?
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First country for Zipline launch?
First country for Zipline launch?
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Zipline's Ghana contract?
Zipline's Ghana contract?
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Zipline's Walmart partnership?
Zipline's Walmart partnership?
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Zipline flights by Sept. 2020?
Zipline flights by Sept. 2020?
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Who led Series A funding?
Who led Series A funding?
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Who led Series D funding?
Who led Series D funding?
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Zipline's grant sources?
Zipline's grant sources?
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Zipline's valuation in 2019?
Zipline's valuation in 2019?
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Study Notes
Zipline Overview
- Zipline is building an automated logistics network estimated to be worth $100 billion.
- September 2020, Zipline's drone completed a delivery to Novant Huntersville Medical Center
- The company was founded in 2014.
- Zipline has flown thousands of missions in Rwanda and Ghana. These flights delivered vaccines, blood, and medical products to clinics that can be hard to reach.
- The company developed an autonomous drone-powered logistics system.
- Zipline operated the largest autonomous logistics network, servicing 2,500 healthcare locations and 25 million people.
- The drones have collectively flown almost 4 million miles and made 65,000 deliveries.
- More than 50% of Rwanda's blood supply is transported using Zipline.
- Zipline employed 300 individuals across San Francisco, North Carolina, Rwanda, and Ghana.
- The company raised $233 million through a Series D round and had a valuation of $1.2 billion.
- September, Zipline partnered with Walmart for on-demand drone delivery testing.
The Zipline Journey
- In 2012, Harvard graduate Keller Rinaudo started Romotive, focusing on smartphone-controlled robotics.
- Romotive launched two Kickstarter projects that received over $280,000 and raising $6.5 million in seed funding.
- In 2014, Rinaudo launched Zipline with Keenan Wyrobek, Ryan Oksenhorn, and Will Hetzler.
- The team learned millions of children and pregnant mothers die annually from lack of blood access.
- The team decided to build what Zipline is today to address this problem.
- Of the five countries the team initially considered, they pared down to Tanzania and Rwanda due to company size.
Rwandan Blood Supply
- Zipline shifted its focus to Rwanda, working with the government and healthcare organizations to increase access to emergency blood supplies.
- They partnered with Rwanda because blood has a short shelf life and its demand is hard to predict.
- Each year, Rwanda collected over 45,000 units of blood.
- Red blood cells had a refrigerated shelf life of 42 days with platelets only lasting five days.
- Plasma and cryoprecipitate could remain frozen for one year.
- The state of Rwanda's blood supply had one regional blood bank in each of its five regions.
- Hospitals drive to the nearest bank when needing blood, but it may not have appropriate products.
- About 43,000 units of blood were collected from 450 collection sites and distributed to five regional centers.
- The blood collection and storage cost was about $80 per unit.
- Some medical products were distributed a few times per month.
- Medical staff had to travel to cities for emergency supplies because ground travel to Kigali often took over three hours
- Delivery driving could cost from $6 to $12 per delivery.
- About 90% of blood transfusions in Rwanda were for emergencies.
- Drones were selected to deliver supplies, because it was the best way to solve the logistical problem in that environment.
Drone Dilemmas
- Zipline decided to buy a drone for military use and modify it to deliver packages.
- The best deal was $200,000 per drone with a 200-flight warranty that would be voided if flown in rain
- The team realized that Zipline would have to custom build its own technology due to the drone industry's early development.
- Zipline considered a VTOL quadcopter and a fixed-wing drone.
- With the same battery pack, fixed-wing drones could travel ten times farther than quadcopters.
Partnerships
- In 2015, Zipline raised $18 million in a Series B round from Google Ventures, Andreessen Horowitz, and angel investors.
- Zipline received $800,000 from the UPS Foundation through Gavi, the Vaccine Alliance
Test in the U.S., Operate in Africa
- The plan was for Zipline to build and test the drones in California while operating in Rwanda.
- The company headquarters was located on a cattle ranch in Half Moon Bay, California.
Taking Flight in Rwanda
- In 2016, Zipline signed an agreement with the Rwandan government.
- By October 2016, Zipline began operating in Rwanda
- The centralized distribution center was in the Muhanga district with 15 drones.
- The service distributed between 50 and 150 deliveries per day, 24/7.
- Orders occurred via text message app, and deliveries occurred within 30 minutes.
- Operational costs were similar to logistics systems using motorcycles.
- Zipline brought down unused expired blood from 7% to 0% at served hospitals.
- Rwanda had a direct contract with Zipline.
The Aircraft
- Zipline's Zips were fixed-wing, dual propeller drones with a 93-mile range and top speeds near 80 mph.
- Zips could fly in windy and rainy conditions. Zips are assembled in California and shipped to Rwanda.
- About 90% of each drone is developed in-house. Upon order receipt, the blood is packed into a temperature-controlled container. A flight operator attaches it to a paper parachute and places it inside the drone
- The drone got connected to a 42-foot launcher and shot from 0 to 70 mph in seconds.
Landing and Flight Data
- Healthcare clinics received notification updates with the expected arrival time
- As the drone reached its target, it descended from under 400 feet to 40 feet, releasing its container
- The landing system at the distribution center caught the drone by its tailhook.
Public Reception
- Zipline's launch in Rwanda was celebrated with a public ceremony.
Evolution of Zipline
- Zipline completed over 4,000 deliveries of 7,000 blood units by 2018
- They serviced roughly 20% of Rwanda's intercity blood supply.
- Zipline announced an additional $70 million raised from Katalyst Ventures, Andreessen Horowitz, Baillie Gifford, & Temasek Holdings.
- Zipline started making plans to spread to other world countries.
Expansion to Ghana
- Zipline and Ghana penned a $12.5 million deal through 2019.
- The UPS Foundation pledged ~$2.5 million with Gavi facilitation to fund initial costs of beginning the operation in the country.
- Zipline launched 4 distribution centers with over 100 team members and drones servicing 2,000+ healthcare centers.
Navigating the U.S. Regulatory Environment
- Through 2020's summer, Zipline and Novant Health partnered in North Carolina to launch a COVID 19 response
- Land for the distribution outlet was given by the local NASCAR organization.
Competitive Landscape
- In America, Amazon, Google, UPS, and Walmart were trialing drone distribution strategies.
- Even though some of these orgs were awarded FAA Part 135 accreditation already, commercial drone delivery options had not been distributing to consumers on the ground in their daily routines.
Walmart and Beyond: Ascending to New Heights
- Through September 2020, Zipline had performed 65,000+ marketing campaign drone distributions
- The company also revealed partnering with Walmart to begin trials for an on-demand system that promised distribution in under 60 minutes.
The U.S. Market
- The U.S. stood ready for more scaling of Zipline given that the COVID-19 pandemic was tightening up government heads to endorse solutions that cut down on human communications, mainly in healthcare.
International Expansion
- Given America's regulatory climate, Zipline would need to decide exactly how much effort must be put into expansion within the nation.
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Description
Explore Zipline's drone delivery service, its transition to a fixed monthly fee in Rwanda, and drone assembly. Learn about drone range, carrying capacity (~3.3 lbs), and design aspects that secured early investment. Understand Zipline's pricing relative to ground services.
