Drone Delivery Canada (TSXV:FLT) is a drone-driven logistics company that was founded in 2011. The company is publicly traded in Canada, the United States, and Germany.
Through the use of commercial drones, the company aims to reduce shipping costs, minimize delivery times, and economize overhead and maintenance costs.
FLT is a highly disruptive company operating in the logistics industry. The company has developed drones that can perform low-weight delivery without the need for human delivery personnel to physically deliver goods (however, you still need a drone pilot). FLT has successfully gained licenses from Canadian authorities to operate in a variety of markets.
Drone Delivery Canada has already delivered 65.2% returns over the past year and has a lot of long-term potential. Here are two reasons why Drone Delivery Canada could be a breakout stock.
Expansion into several markets
Drone Delivery Canada has successfully managed to find a number of commercial applications for its product. Rather than just restricting services to one or two industries, the company is striving to disrupt a wide range of industries simultaneously. However, the overarching theme of the company remains logistics and delivery.
The company has developed specialty drones that can deliver goods while maintaining them at a particular temperature. This could prove potentially game-changing for the healthcare industry which requires such delivery capabilities. In addition to delivering pharmaceuticals, these drones can deliver blood, medical tests, organs, biologicals, emergency relief supplies, and more.
In addition to healthcare, the company has also expanded into airports, oil & gas, mining, heavy industries, as well as other industries.
FKT has recently entered into a partnership with Air Canada (TSX:AC) and has become its exclusive drone delivery partner. It will leverage Air Canada Cargo’s existing relationships to solve last-mile delivery problems for AC.
Overall, Drone Delivery Canada is a company in its nascency even with 10 years under its belt.
Drone Delivery Canada or FLT has massive upside potential
Drone Delivery Canada currently has a market cap of just around $220 million. This low market cap may mean that the company has a lot of upside left. The company’s stock is trading around the $1 mark, which makes it a penny stock. Looking at the company’s potential to disrupt the logistics industry, it would not be surprising if the company hits a billion-dollar valuation soon.
The company has already been growing quite rapidly. It generated sales of approximately $260,000 in 2020 and is expected to reach sales of $20 million in 2022. That’s a growth of 100x in just 2 years.
Drone Delivery Canada is a unique company that is poised to enjoy a first-mover advantage, hence it is tough to draw parallels for it. The commercial drone delivery industry does not have many players in it. However, Drone Delivery Canada has spent the last ten years working out the kinks of its operations and technology as well as getting government approvals.
Now that the heavy-lifting has been done, it may be time for the company to see exponential growth.