AirWhiteWhale, a Chinese cargo drone start-up, is planning to raise between $14.7m and $22.1m to fund design, research, and development and to expand its workforce, Nikkei Asia reports.
The company, founded in 2021 by CEO Hu Zhendong, aims to take advantage of the growing demand for branch-line transportation using large cargo drones in the logistics sector.
More Cost-effective Than Cargo Planes
Hu, who holds a doctorate in aircraft design and has worked at Airbus and the Commercial Aircraft Corporation of China, believes that large cargo drones will be more cost-effective than conventional cargo planes.
Hu believes that the recent statement by the Chinese government regarding operating standards for fixed-wing, large cargo drones present an opportunity for AirWhiteWhale to establish itself in the market.
The first model produced by the company was called the W5000. It has a maximum takeoff weight of 10.8 tonnes, a maximum payload of 5 tonnes, and a standard cruising range of 1,200 kilometers that can be increased to 2,600 kilometers.
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The W5000 was developed to have the capacity to transport large and heavy cargo, such as large pieces of machinery and equipment, and it is also able to land on and take off from unpaved runways.
A Competitive Advantage
Hu believes that AirWhiteWhale has a competitive advantage in aircraft design and that the company's cargo drones can offer a solution for branch-line transportation that is more cost-effective and efficient.
In October 2022, the company completed the first test flight of its W5000 large drone. The company also has plans to establish a manufacturing and testing site in Changzhou, which is located in the province of Jiangsu.
Logistics Industry Woes
The logistics industry faces several challenges, including rising fuel costs and a truck driver shortage. Large cargo drones have the potential to significantly reduce costs and improve efficiency in the industry, making them an appealing option for businesses looking to boost their bottom line.
According to data from Statista, the most significant challenge that the sector must overcome is the reduction of expenses associated with transportation and retaining qualified labor.
Between 2022 and 2030, the global logistics market is expected to grow at a compound annual growth rate (CAGR) of 6.8%, according to data compiled by FTI Consulting.
This is because of an increase in e-commerce logistics, container shortages, port closures that cause port congestion, a lack of truck drivers, and limited space in the air freight market.
New Player
Hu Zhendong, CEO of AirWhiteWhale, believes the company's cargo drones will meet the growing demand for branch-line transportation, and its aircraft design will give it a competitive advantage in the market.
The company is poised to significantly impact the logistics sector as it plans to establish a manufacturing and testing site in Changzhou, Jiangsu province, and raise funds for additional design, research, and development.
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