(Bloomberg) — Mesa Air Group Inc. is looking to enter the drone food delivery business with the purchase of four pilotless aircraft from startup Flirtey.
Mesa, a Phoenix-based regional carrier, has an option to buy 500 additional drones, the two companies announced Thursday. Terms weren’t disclosed. The deal marks the first time a U.S. airline has attempted to break into the so-called last-mile delivery business.
Autonomous drone delivery appeals to restaurants, pharmacies and retailers as a potentially faster, cheaper way to deliver small parcels than paying drivers to fight through traffic and find parking. The labor shortage currently afflicting the restaurant industry only makes drones more appealing.
U.S. approval of routine deliveries by small flying robots remains years away. The Federal Aviation Administration has yet to write regulations governing such operations, and Flirtey hasn’t won approval to conduct the kind of robust tests being done by Alphabet Inc.’s Wing LLC and United Parcel Service Inc. Amazon.com Inc., which in 2013 said it could start making drone deliveries within four or five years, hasn’t moved beyond the testing phase.
Read more: Toothpaste Will Fly as Alphabet’s Drones Test Delivery in Texas
Mesa, which operates 600 daily flights with 145 aircraft, has experience navigating FAA regulations, arguably making it a natural partner for a drone startup.
Founded in 2013 in Reno, Nevada, Flirtey has raised about $35 million. The startup says its Eagle drone can deliver packages weighing as much as eight pounds up to 3 miles within six minutes on a single charge. Flirtey has done test deliveries with Domino’s Pizza Inc. and 7-Eleven Inc.
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
