FedEx Express heralds collaboration with Elroy Air, for autonomous aerial middle-mile operations

Taking steps to launch test flights geared towards middle-mile delivery in 2023, FedEx Express, a subsidiary of global freight transportation and logistics services provider FedEx, and San Francisco-based Elroy Air, a developer of autonomous aircraft systems and software focused on expanding the reach of global express shipping, said this week they are collaborating to build what they said is the first end-to-end autonomous vertical take-off and landing (VTOL) aerial cargo system.

A major part of this United States-based partnership centers around FedEx Express developing plans to test Elroy Air’s Chaparral autonomous air cargo system within FedEx Express’s middle-mile logistics operations and move shipments between sortation locations. The companies have been collaborating going back to January 2020.

Joe Stephens, senior vice president, global planning, engineering and technology, FedEx Express, told LM that FedEx believes that continued innovation and automation will improve safety, efficiency, and productivity for the company’s nearly 600,000 team members as it continues to move the world forward.

“As we explore opportunities to strengthen our middle-mile capabilities within the FedEx Express network, we’re looking at end solutions that hit on all three of those key pillars for our customers and our team members,” he said. “We believe this collaboration can deliver on that potential, as the Chapparal can autonomously pick up 300-to-500 pounds of cargo and deliver by air up to 300 miles without the need for additional infrastructure, such as airports or charging stations.”

As for examples of ways in which this collaboration can be leveraged, Stephens noted how this technology could be particularly useful in rural scenarios, or places like the Caribbean or Hawaiian Islands and when there may not be enough cargo to send a small plane, or perhaps even a truck.

“These drones could help improve reliability and service for FedEx customers in those and similar scenarios,” he said.

As for what drove the partnership between FedEx Express and Elroy Air, Stephens said that there were many different driving forces for this collaboration, adding that the rampant growth of e-commerce, especially coming out of the COVID-19 pandemic, has increased the demand for reliable, efficient transportation and logistics solutions.

“FedEx decided to put more emphasis and focus on innovative and autonomous projects that will improve safety, efficiency, and productivity,” he said. “FedEx and Elroy Air have been working together since early 2020. Working with Elroy Air early in their development allowed FedEx to share potential use cases and anticipated requirements, which would make it easier for FedEx Express to test and potentially integrate the Chaparral into network operations. This early collaboration also allowed FedEx to stay up to date with the development of Elroy Air’s drone program and prepare for the Chaparral launch, earlier this year.”

Regarding the main benefits of this collaboration for FedEx customers, Stephens said that they can expect more efficient and reliable operations at the middle-mile, which includes transportation between sortation locations—between hub and station, ramp and station or station to station.

“The use of Elroy Air’s Chapparal aircraft eliminates the need for airport landings and new infrastructure, like charging stations, which strengthens delivery operations across the U.S., particularly near islands and remote areas,” he said. “As with most of our innovations, improving the customer experience and delivery operations is at the core of this pilot.”

From a competitive perspective, for FedEx, he said that the exponential growth of e-commerce has accelerated the demand for reliable, autonomous solutions throughout all stages of the supply chain, adding that FedEx believes that continued innovation and automation will improve safety, efficiency, and productivity for the workforce.

“This strategic collaboration is the first-of-its-kind and gives FedEx an opportunity to thoughtfully integrate this technology into our operations,” he said. “Also, having worked with Elroy Air early on, since 2020, we have had the opportunity to provide input on operational factors to allow this technology to fit seamlessly into the FedEx network. This is the latest autonomous innovation in our growing portfolio of cutting-edge technology that helps us exponential volume growth, specifically due to e-commerce.  Plus, the use of the Chaparral could also align with the FedEx 2040 carbon-neutral operations goal, as it is a hybrid-electric autonomous aircraft.”

Kofi Asante, Elroy Air’s VP of Business Development and Strategy, said in a statement that Elroy Air is proud to work with FedEx to build the next generation of express logistics.

“When you’re not limited by challenging infrastructure, traffic, or airports, logistics can reach more people, faster than ever before,” said Asante. “We look forward to working together to create a new future for how we get goods to people around the world.”