FedEx Plans to Test Autonomous Drone Cargo Delivery with Elroy Air

FedEx and Elroy Air work to launch test flights aimed at middle-mile delivery in 2023

FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, is teaming up with California Bay Area-based Elroy Air, the company building the first end-to-end autonomous vertical take-off and landing (VTOL) aerial cargo system. As a first of its kind agreement in the U.S., FedEx Express will develop plans to test Elroy Air’s Chaparral autonomous air cargo system within the company’s middle-mile logistics operations, moving shipments between sortation locations. This is the latest initiative from FedEx in its effort to explore and adopt emerging technologies across its networks.

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Artist rendering of Elroy Air Chaparral (Graphic: Business Wire)

The exponential growth of e-commerce has accelerated the demand for reliable, efficient transportation and logistics solutions throughout all stages of the supply chain. FedEx believes that continued innovation and automation will improve safety, efficiency, and productivity for the company’s 600,000 team members as they continue to move the world forward.

“FedEx was built on innovation and we are always looking toward new technologies to help enhance the logistics industry through improved safety, efficiency and customer service,” said Joe Stephens, senior vice president, global planning, engineering and technology, FedEx Express. “We look forward to continued testing and learning throughout our collaboration with Elroy Air.”

Elroy Air announced its signature Chaparral autonomous aircraft in January 2022. The Chaparral aircraft is an eVTOL aerial cargo system that can autonomously pick up 300-500 pounds of cargo and deliver it by air up to 300 miles. The Chaparral is capable of longer-range flights without the need for additional infrastructure, such as airports or charging stations.

“We are proud to work with FedEx to build the next generation of express logistics,” said Kofi Asante, Elroy Air’s VP of Business Development and Strategy. “When you’re not limited by challenging infrastructure, traffic, or airports, logistics can reach more people, faster than ever before. We look forward to working together to create a new future for how we get goods to people around the world.”

FedEx and Elroy Air have been working together since January 2020 and will continue their collaboration to pursue certifications and begin flight testing in 2023.

About FedEx

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $92 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its nearly 600,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit about.fedex.com.

About Elroy Air

Elroy Air is developing industry-first autonomous aircraft systems and software to expand the reach of express shipping to every person on the planet. Building on the powertrain and perception technology enabling the hybrid-electric / autonomous vehicle revolution, its vertical-takeoff-and-landing (VTOL) aerial logistics systems can operate outside of airport infrastructure and evolve the possible in commercial air cargo. The company’s solutions will expand delivery locations and reduce timeframes, provide immediate aid and relief in disaster and fire fighting situations, as well as rapid autonomous resupply for troops in the field. The company’s headquarters is in South San Francisco, California and it is financed by world-class venture capital firms including Catapult Ventures, Marlinspike Capital and Prosperity7 Ventures, strategic investors including Lockheed Martin Ventures, and pioneering angel investors including early Uber executives. For more information, visit https://elroyair.com/.

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