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Why Zipline's Business Model is so successful?

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Zipline’s Company Overview

Zipline, founded in 2014, is a pioneering company that operates drone delivery services, specializing in transporting medical supplies and healthcare products. With a mission to provide universal access to lifesaving medical commodities, Zipline established itself as a leader in the drone delivery industry. The company primarily focuses on serving remote and hard-to-reach areas, ensuring timely and efficient delivery of critical medical goods. Zipline is a robotics company based in California. The company uses drones to deliver vital medical supplies. The company began drone deliveries in Rwanda in 2016 and primarily delivered blood. Zipline's drones are battery-powered and have a cruising speed of 100 km/h (62 mph). The drones drop their deliveries via parachute to clinics in remote areas. The company has since expanded to deliver additional medical supplies such as vaccines, HIV medications, and malaria drugs. In July 2018, Zipline announced that it would begin delivering medical supplies in rural areas of the United States starting in 2019. Zipline's business model revolves around deploying autonomous drones to deliver medical supplies. The company partners with governments, healthcare organizations, and logistics providers to establish distribution centers equipped with drones—these distribution centers stock essential medical items such as blood, vaccines, and medications. Healthcare professionals can place orders through a dedicated platform, and Zipline's drones are then dispatched to deliver the required supplies directly to the designated locations, often bypassing traditional infrastructure challenges. Zipline operates on a service-based revenue model, charging its partners, usually governments or healthcare organizations, for drone delivery services. The fees may be structured based on factors such as the distance covered, the urgency of delivery, and the volume of medical supplies transported. Zipline establishes contracts and partnerships with its clients, creating a sustainable revenue stream that allows the company to maintain and expand its drone delivery infrastructure. Zipline's innovative approach contributes to improving healthcare accessibility and saving lives in areas with limited infrastructure and challenging terrains.

Country: California

Foundations date: 2011

Type: Private

Sector: Healthcare

Categories: Health

Zipline’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: reduces anxiety, rewards me, nostalgia, therapeutic value, fun/entertainment

Functional: saves time, reduces risk, quality, informs

Zipline’s Related Competitors

Zipline’s Business Operations

Performance-based contracting:

Performance-based contracting (PBC), sometimes referred to as performance-based logistics (PBL) or performance-based acquisition, is a method for achieving quantifiable supplier performance. A PBC strategy focuses on developing strategic performance measures and the direct correlation of contract payment to success against these criteria. Availability, dependability, maintainability, supportability, and total cost of ownership are all standard criteria. This is accomplished mainly via incentive-based, long-term contracts with precise and quantifiable operational performance targets set by the client and agreed upon by contractual parties.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Disruptive trends:

A disruptive technology supplants an existing technology and fundamentally alters an industry or a game-changing innovation that establishes an altogether new industry. Disruptive innovation is defined as an invention that shows a new market and value network and ultimately disrupts an established market and value network, replacing incumbent market-leading companies, products, and alliances.


The prevention, treatment, and management of disease and maintaining mental and physical well-being via the medical and allied health professionals' services. It includes diagnostic, preventative, remedial, and therapeutic service providers such as physicians, nurses, hospitals, and other private, public, and volunteer organizations. Additionally, it comprises producers of medical equipment and pharmaceuticals, as well as health insurance companies.

Transportation as a Service (TaaS):

Transportation as a Service (TaaS), also referred to as Mobility as a Service (MaaS), refers to a trend away from privately owned means of transportation and toward subscription-based mobility solutions. This is accomplished by integrating transportation services from public and private suppliers through a unified gateway that organizes and maintains the journey, which customers may pay for with a single account. Users may either pay per journey or subscribe to a monthly subscription for a certain distance.


In most instances, support is not intended to be philanthropic; instead, it is a mutually beneficial commercial relationship. In the highly competitive sponsorship climate of sport, a business aligning its brand with a mark seeks a variety of economic, public relations, and product placement benefits. Sponsors also seek to establish public trust, acceptability, or alignment with the perceived image a sport has built or acquired by leveraging their connection with an athlete, team, league, or the sport itself.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

Supply chain:

A supply chain is a network of companies, people, activities, data, and resources that facilitate the movement of goods and services from supplier to consumer. The supply chain processes natural resources, raw materials, and components into a completed product supplied to the ultimate consumer. In addition, used goods may re-enter the distribution network at any point where residual value is recyclable in advanced supply chain systems. Thus, value chains are connected through supply chains.

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