China-based DJI already dominates 70% of the global market for the production and sale of unmanned vehicles for application to a wide range of commercial industries – from construction to fire-fighting. The company is also a pioneer in the use of drones for space exploration and military warfare – with few rivals in these sectors, either.

So what can DJI possibly gain by entering the already crowded and highly competitive field of retail drone delivery?

At first blush, the challenge seems daunting.  At least a half a dozen other drone companies, including Wing, Manna and Zipline, have already carved out ever-widening niches in the retail delivery sector, each with tens of thousands of deliveries under its belt.

The three companies first built their reputation outside the United States – in Australia, Ireland and Africa, respectively – and are now poised to conquer the lucrative American consumer market, about 60% of the world’s total.  They have sterling safety records and have received – or are about to receive – FAA certification for flights in selected local markets, with plans to expand across much larger geographic areas with Beyond Visual Line of Sight (BVLOS)  authority almost certainly in their grasp.

Even in China, DJI is no retail drone pioneer.  A Shenzhen-based company. Meituan, last year made 100,000 drone deliveries with its cutting-edge on-demand shopping platform that takes off and lands on crowded city rooftops. EHang, already a recognized leader in the passenger vehicle market, also operates a drone delivery service in the country with DHL.

For most drone companies, entering the delivery market this late in the game  – Zipline began flying medical supply deliveries in Rwanda way back in 2016 – would likely be too daunting a challenge – but not for DJI, it seems.  Few of its competitors can match not only DJI’s brand reputation but also its working capital.  While other companies must still solicit outside investment to finance their expansion plans, DJI possesses vast resources in-house.

And the fact remains that the retail drone sector is still in its infancy.  No one is close to dominating any one national market, let alone the market worldwide.  Outside a few selected countries, most companies are still in the “last mile” delivery mode, seeking to prove their success in small suburban “hubs.”  And the different companies are experimenting with different payloads and modes of delivery.

In short, there are a multitude of niches still to be explored and fulfilled.

How does DJI’s offering stack up?  Its FlyCart 30 is rather unique.  For one thing it offers a large payload – more than 60 lbs. – that can also be adjusted somewhat depending on the delivery mode.  Other retail drones can carry goods weighing 5-10 lbs., which may cover most smaller food and store delivery items for a single customer from Amazon or Walmart, for example.

But Flycart’s carry capacity could include heavier items, including spare parts, emergency medical supplies, food and blankets, human donor organs, or test kits for larger groups of recipients.  In other words, SkyCart 30 could function as a cargo drone, and fulfill a number of important roles related to humanitarian aid, search-and-rescue and even industrial resupply missions, as needed.

FlyCart also offers two different delivery modes.  One is a cargo box that can be off-loaded and unloaded within a few minutes once the drone lands.  Another is a wynch-based system that allows goods to be lowered while the aircraft hovers over a landing site.  In effect, the delivery mode can be adapted to different kinds of settings and recipients.

DJI has also developed some highly advanced technology that keeps FlyCart’s cargo – and the drone itself – from swaying in extreme weather conditions.  It can actually fly in strong winds and even heavy rain, which may well be unavoidable in some geographic areas and seasons, but beyond the reach of smaller, more  lightweight delivery drones.

Overall, this is a highly versatile aircraft that a wide range of suppliers, from mass retailers and major manufacturers to individual consumers could find useful for expedited aerial deliveries around the clock in remote inaccessible areas.  One caveat:  SkyCart is still a “last- mile” de;livery drone.  Its battery power allows  for a 10 mile trip and about 18-20 minutes of continuous flying time.  This is comparable to most, but not all, of its competitors

Industry analysts are somewhat divided over where DJI’s new drone might best fit into the market in the short-term.  DJI is hinting that emergency medical transport may be its core use case.  But outside China, especially Africa, but increasingly elsewhere, Zipline – whose drone can fly 190 miles on a single charge – seems to have cornered this niche.  And Germany’s Volocopter is already making a huge claim to the heavier cargo market in Europe.

Within China, though, DJI could easily assume pole position with medical supply deliveries.  Not that there isn’t competition.  Antwork, a small start-up, has established more than 100 regular medical supply routes in China and has flown more than 500,000 kms. commercially.  But with a larger fleet of drones operating across more areas, SkyCart 30 could easily outpace Antwork’s operation in a relatively short time, industry observers say.