Zipline signs funding agreement with US government

Drone logistics firm Zipline has signed a $150 million agreement with the US Department of State to support the expansion of its medical delivery operations in Africa.

Zipline said the partnership had the potential, at full scale, to triple the number of hospitals and health facilities the company serves, from approximately 5,000 currently to 15,000, and provide up to 130 million people with instant access to blood and medications.

The agreement is built around a “pay-for-performance” model, which will see Zipline receive up to $150 million to expand its medical logistics drone infrastructure across Africa.

As buyers of the service, African governments will pay up to $400 million in utilization fees, with the additional funding being released only when the governments sign expansion contracts and commit to pay for ongoing logistics services to ensure long-term sustainability.

Following the release of the funds, the US government money will go towards the construction of new Zipline hubs to further expand drone networks.

Laredo, Texas, recently awarded a new $3.4 million contract to Axon Enterprise for the provision of drones to the Laredo Police Department.