Zipline Expands Drone Delivery Network in Nigeria, Eyes Five Additional States

Zipline, the U.S.-based drone logistics company backed by Goldman Sachs and Sequoia Capital, is set to expand its operations to five more Nigerian states by the end of 2025. This follows a Memorandum of Understanding (MoU) signed with the Nigerian government in September 2024, allowing Zipline to deploy its drone technology for delivering critical medical supplies to remote areas.

According to Akin Oyediran, Zipline Nigeria’s Country Manager and Partnership Lead, discussions with state governments are ongoing to facilitate expansion beyond its current operations in Bayelsa, Kaduna, and Cross River. “The federal government is partnering with us in working with different states because each state has its own healthcare system. We’re working together to start deploying nests and introduce drone technologies for medical supply deliveries,” Oyediran said.

Tackling Nigeria’s Healthcare Supply Chain Challenges

Nigeria’s healthcare system faces persistent challenges, including poor drug storage, infrastructure deficits, and supply chain inefficiencies. In rural and riverine areas, where transportation is difficult, patients often rely on motorcycles, boats, or long treks to access medical supplies—delays that can be life-threatening.

While companies like LifeBank, the Africa Resource Center for Excellence in Supply Chain Management (ARC_ESM), and the Nigeria Supply Chain Integration Project (NSCIP) have sought to improve healthcare logistics, financing limitations have restricted their reach. Zipline, backed by nearly $900 million in total funding, does not face the same challenge.

Technology-Driven Medical Supply Chain

With a valuation of $4.2 billion, Zipline has continued to refine its drone technology. Each Zipline nest—a regional drone deployment hub—can handle up to 300 flights per day, covering distances of up to 200 kilometers round trip. These drones deliver vaccines, anti-malaria drugs, blood products, and just-in-time (JIT) medical supplies to hundreds of locations within a 38,000 km² radius.

“We’re going to start delivering blood and other medical equipment to riverine areas where people lack access to quality healthcare,” Oyediran stated. He also emphasized Zipline’s ability to deliver essential supplies in as little as 30 minutes—a stark contrast to the 14-hour delays often faced by traditional logistics networks.

Scaling Up to a National-Level Operation

Zipline currently operates in eight countries across four continents, having launched its African operations in Rwanda (2016), before expanding to Ghana (2019), Nigeria, Kenya, and Côte d’Ivoire (2022). However, Nigeria presents a far larger operational challenge.

“Nigeria is 36 times the size of Rwanda, where Zipline operates with just two nests covering the entire country. To achieve similar coverage in Nigeria, we would need approximately one nest per state, totaling 36 nests,” Oyediran explained.

While the company has not disclosed its pricing structure for Nigeria, its contracts are typically tailored to government and institutional partners. McKinsey & Company estimates that a single-package drone delivery costs around $13.50, with labor making up 95% of the total cost. Unlike conventional delivery models, Zipline does not charge per flight but instead operates a monthly service model that covers warehousing, inventory management, drone flights, and real-time data access.

Zipline’s Broader Expansion Plans

While Zipline’s immediate focus remains healthcare logistics, the company is exploring opportunities in agriculture and e-commerce logistics. With Nigeria’s rapidly growing digital economy, drone-powered supply chain solutions could extend to farmers, retailers, and last-mile delivery services.

“We see Nigeria as a key market because it offers an opportunity to improve healthcare on a large scale,” Oyediran noted. “Our mission is to make drone delivery possible for everyone on earth.”

With government-backed initiatives and strategic partnerships, Zipline’s expansion across Nigeria could redefine medical logistics, setting the stage for wider adoption of drone delivery in critical sectors.