Matternet Business Model

Business Model

We create value by offering a transportation service that:

  • Is faster than conventional means of transportation
  • Can reach areas that are otherwise inaccessible
  • Saves time by bringing goods to people rather than sending people to get goods
  • Has low operating costs that are continuing to reduce further
  • Has little environmental impact: pollution-free transport with minimal impact on ecosystems around planned routes

We will stay ahead of our competitors by:

  • Developing our solution directly in and for the needs of developing markets
  • Creating early relationships with key companies, foundations, and governments
  • Building superior infrastructure solutions and developing networks to which any provider can connect their vehicles

Market and comparative analysis

Our initial markets are defined as the lightweight logistics last mile transportation markets. We are also hardware manufacturers of micro/mini Unmanned Aircraft Systems (UAS), initially selling a point-to-point transportation system. There have been a few trials using UASs for transporting medicine, such as E-juba and BF MedicAir (SA). A project in development is Airship Africa, for heavy cargo transportation using dirigibles.

Business Model

In Phase 1, we provide an easy-to-use AAV kit for the lightweight last mile logistics industry, targeting actors who need to access places difficult to reach by conventional means of transportation. Target clients include hospitals/doctors (blood/tissue samples, medicine, vaccines), local businesses (documents, small goods, electronics), governments (certificates, disaster relief supplies), non-governmental organizations and existing courier services such as national postal service entities (parcels). The initial kit consists of one AAV and two stations. Cost for parts plus labor is $1200. We plan to sell it for $2500.

In Phase 2 and Phase 3, the Matternet becomes a connected network of interacting AAVs and ground stations. This can be compared to a telecommunication system with base stations as the infrastructure, serving a growing fleet of AAVs. Users can either buy or rent the infrastructure. Those who wish to connect their AAVs to the network can subscribe to the Matternet.

The Matternet will target areas in which AAVs are competitive with human transportation, for example motorcycles and trucks. In addition, the Matternet will target regions where entities have expressed interests in setting up a pilot project.

The Matternet is cost-competitive with all types of transportation in regions that lack a reliable road infrastructure. The Matternet is competitive with motorcycles for transporting goods under 50 kg in rough terrains where the operational cost of motorcycles is approximately 60 cents per kilometer.

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