ARK Invest Backs Manna to Outpace Alphabet and Zipline in Drone Delivery
Manna, an Irish drone delivery startup, has recently secured $50 million in funding. This investment comes from prominent backers including ARK Invest, the Ireland Strategic Investment Fund, and others. With this new capital, Manna aims to expand its operations in the United States and Europe.
Manna’s Growth and Operations
Founded in 2018, Manna operates in Ireland, Finland, and Texas. The startup has already completed over 250,000 successful deliveries, ranging from food items to biomedical tests.
Strategic Partnerships
- New partnership with Uber
- Existing contracts with DoorDash, Deliveroo, and Just Eat
Manna’s innovative model focuses on cost-effective delivery. While traditional road-based deliveries in the U.S. can cost about $10 per order, Manna achieves this for only a few cents in electricity.
Efficiency and Market Potential
The company’s drones operate at speeds of 50 to 60 mph and can deliver packages in under three minutes. Each aircraft can handle eight deliveries per hour, significantly outperforming the industry average of 1.2 deliveries.
The rapid delivery market is on a growth trajectory, with a projected annual growth rate of 21.3%. It is expected to reach a value of $100 billion by 2034. Additionally, the last-mile delivery segment was valued at approximately $166.45 billion in 2024 and could grow to $311.31 billion by 2031, indicating a compound annual growth rate of 9.62%.
Target Market
Manna aims to serve 92 million family homes in the U.S. where traditional gig economy delivery has been less feasible. With more than one billion food delivery orders placed annually in the U.S., Manna sees a substantial opportunity in this sector.
Competitive Landscape
Manna stands out in a competitive market that includes players like Google’s Wing and Zipline. The latter has raised $600 million and boasts a valuation of $7.6 billion, with 2 million deliveries worldwide. Manna is currently the only company in this cohort making a profit on every flight.
Regulatory Developments
Recent regulatory changes by the FAA are driving interest in drone delivery investments. Proposed rules aim to allow drones to operate beyond visual line of sight, which could significantly alter the logistics landscape by mid-2026.
In the coming year, Manna plans to establish 40 to 50 new locations in the U.S., starting in Texas and Oklahoma. This expansion reflects Manna’s strategy to capitalize on the burgeoning demand for efficient, drone-based delivery systems.
According to CEO Bobby Healy, drone delivery is poised to become a standard part of logistics. He emphasizes that this technology supports small businesses, providing them with superior logistics solutions compared to larger competitors like Amazon.
Conclusion
Manna’s recent funding and strategic positioning in the drone delivery market can help it outpace companies like Alphabet and Zipline. The future looks promising as the sector continues to evolve and grow.
