Thank you very much.
Madam Chair, members of the Standing Committee on Transport, Infrastructure and Communities, Madam Clerk, first of all I would like to thank you for giving me the opportunity to talk to you about Drone Delivery Canada, provide an update on the considerable commercial and technological advances we've made as a company in the last two years, and share new information regarding the sector and our latest mandate regarding service delivery to northern, rural and remote communities.
Since my last appearance at the committee, in November 2016, a lot of water has flowed under the bridge. For those who were not present during my last visit, I will remind you that Drone Delivery Canada is a pioneering technology firm based out of Toronto, with a focus on designing, developing and implementing a commercially viable drone delivery system within the Canadian geography. Our group consists of highly seasoned technology professionals who have successfully built, owned and operated ventures in the Canadian marketplace. Drone Delivery Canada is one of the first federally certified drone delivery operators in Canada, and the first Canadian drone cargo operator recognized by Transport Canada as a compliant operator.
In the near future, drones will be able to deliver products faster, more easily and more cheaply, allowing organizations to grow their revenues and bottom lines. Regulatory bodies continue to move forward on the regulatory frameworks of commercial drone use, and we are seeing a willingness on the part of Transport Canada to work towards the industry and embrace innovation.
Industries that would utilize drone delivery services are endless. They can include logistics providers, postal delivery providers, first responders, parts distribution, medical supply delivery, and overall distribution.
DDC's drone service operates between fixed end points called depots. The drones are highly automated and are controlled through a centrally managed software system at a mission control centre, which can be located where the aircraft is operating or at DDC's main operation centre near Toronto. Trained and licensed supervisory pilots located at mission control oversee all flights and can intervene at any time should there be a need to do so.
In February 2018, DDC was granted a compliant operator special flight operations certificate by Transport Canada, allowing us to operate across Canada. DDC's first commercial aircraft, the X1000 Sparrow, was deemed compliant with Transport Canada's standards in December 2017. It is capable of carrying 4.5 kilos of payload over a potential distance of 20 kilometres.
Our recently announced heavy-lifting Condor drone will soon start testing and will be able to carry up to 180 kilos of cargo with a potential range of 150 kilometres.
It is also important to note that we have completed a significant amount of “beyond visual line of sight” testing under the supervision of Transport Canada. We have signed a $2.5-million commercial agreement and are currently in advanced negotiations for multiple commercial agreements in 2019. We are in discussions with 50 customers, including retailers, cargo networks, hospital groups, couriers, logistic service providers, as well as various remote communities in Canada. We have agreements with the Moose Cree First Nation, NAPA Auto Parts, Peel region paramedics, and many more. We're in partnership with Toyota Tsusho, and in advanced discussion with several cargo carriers.
We are working on a second drone cargo network in the Northwest Territories. We see tremendous opportunities to address the needs of remote communities, including transportation of goods deemed essential for economic growth, such as food and medical equipment. Our intention is to serve 200 northern and remote communities across the country over the next five years. This is very good news for Canada, especially for communities in the north that continuously struggle hard with the lack of roads and other transportation modes.
Those communities, with mostly indigenous people, have access to food and goods; however, it is at prohibitive prices. The high cost of food is unacceptable in a country like ours, where everybody should be equal. I saw a CBC news article the other day that a mother of four in Iqaluit had just purchased a 24-pack of bottled water for $29.99 at a grocery store. Meanwhile, in Winnipeg a 24-pack costs just $4.49. This is not acceptable. I've seen this also in Moosonee, where we are working closely with the Moose Cree First Nation to build the first affordable year-round cargo delivery service to operate in the region.
Affordability is a key component of our value proposition. The customer value of using low-cost, highly automated drones over short flight paths would be substantially better than that of competing services using helicopters. The service will begin by offering small-package delivery service on fixed routes, but it is expected to add increased distances and payload capacity as new, heavier-lifting drone models become approved by Transport Canada.
The business is to be community-owned and operated by the Moose Cree First Nation. Although financial forecasts show the potential for profitability as the service expands, the primary objective of the business is to create social benefit to the community. The benefits to the community from the creation of a new year-round transportation infrastructure include better communication, new employment opportunities, a platform for new businesses to serve the community, better health care and more education options for the youth.
Through increased productivity and technological innovation, growth within the Canadian supply chains and well-paying job creation in communities, as well as social, health and environmental benefits, projects in northern and indigenous communities will bring public economic and innovation benefits. Finally, Drone Delivery Canada will also contribute to reduced gas emissions. It will help to reduce diesel use in remote indigenous communities.
We ask Transport Canada and the federal government to work with us to help communities in the north have a better life.
To conclude, I will say that just like a railway in the sky, Drone Delivery Canada brings a new dimension to transportation. The 19th century was that of trains, and the 20th century was that of cars. The 21st century will be that of drones.
Thank you for your attention. I'm ready to take your questions.