Zipline to Expand Drone Logistics to Five Additional States in Nigeria
The U.S.-based drone logistics company Zipline aims to expand to five additional states in Nigeria by the end of this year.
A memorandum of understanding signed with the Nigerian government in September 2024 allows Zipline to use its drone infrastructure to deliver essential medical supplies to remote and underserved areas in the country.
Zipline currently operates drone distribution stations in Bayelsa, Kaduna, and Cross River. The company plans to establish additional distribution stations in five more states by the end of the year, further strengthening its supply chain.
Nigeria faces significant challenges in its healthcare supply chain. These issues include poor drug storage, bad road conditions, and widespread counterfeit medicines. Bureaucratic procurement delays in public hospitals often lead to limited access to essential medicines, especially in rural areas.
People are forced to wait long periods and spend large amounts of money to access necessary medications. The only way to prevent this problem is through proper investment in technology and infrastructure.
Before Zipline, institutions like LifeBank—a health technology and logistics company delivering essential medical products such as blood—along with the Africa Resource Center for Excellence in Supply Chain Management and the Nigeria Supply Chain Integration Project (NSCIP), were already working to address these challenges.
However, due to a lack of funding, these projects could not be scaled to a larger area. Unlike them, Zipline does not face financial constraints.
In May 2023, Zipline raised $330 million in a Series F funding round, bringing its total funding to approximately $900 million and increasing its valuation to $4.2 billion.
The company used this funding to improve its drone technology. Additionally, Zipline generates revenue by partnering with hospitals and medical institutions for its delivery services.
Zipline first launched its operations in Africa in Rwanda in 2016. The company later expanded to Ghana in 2019, followed by Nigeria, Kenya, and Côte d’Ivoire. Today, Zipline operates in eight different countries across four continents.
Each Zipline nest can conduct up to 300 drone flights per day, delivering vaccines, malaria medications, and nutritional supplements on time. While it might take healthcare personnel up to 14 hours to reach certain locations, a Zipline drone can make the same journey in just 30 minutes.
Although these achievements are significant, Nigeria is a vast country with an enormous population. If Zipline does not expand sufficiently within the country, its impact could remain limited.