 And here's a special drone right here, and hi, so who are you? I'm Daniel Verrida, co-founder of Regi Technologies, which is a drone logistic solution company. So this is, I see, five motors going on, so how does it work? The drone is vertical take-off and landing, so it will take off and land like this using these four propellers. Once it reaches 50 meters, this propeller will turn on and it will fly as an airplane reaching 80 kilometers distance. What do you say? 80 kilometers distance. 80? Yes, 80. 80. With this side, no, this side, this is the one right here. 80 kilometers is enough to go from one side of Switzerland to the other, nearly. Almost there. Almost? So is this also flying or is it only a mock-up? No, this is only a mock-up. For now, the real drone is there because we transport three kilograms in 15 liters. So a box that is a shoe size box, more or less. That's pretty much 80% of my Amazon purchases. Exactly. Is that what it's for? Yes. So basically it was developed from the box to the drone. Instead of saying here is a drone, whatever fits inside will be the box. We developed first the box to the specs of 80% of Amazon's deliveries. 80%? 80%. I just said 80 out of 80%. So, does this one open? Yes. So basically in order to protect the box while flying, the box goes inside the drone. So you fit the box inside, you close it and the drone is fully autonomous. It will take off and do a mission. Because the ultimate dream of drone delivery is to have vertical take off and airplane style. This is the best way to do it? That's the efficient way to do it. There's another company, the Wingstrah. How do you compare it with them? So Wingstrah is a good company. It's a good mapping company. So a lot for mapping. They're mapping. But it's not for delivery? No. This one is delivery. We're only doing deliveries. So I think drones need to be fitted for a purpose. And there's different specs that actually make a drone great at their purpose. For us, for example, we are only a cargo company. Only cargo? We don't fit cameras inside. We use it for delivery. But you should definitely be delivering all these health emergency equipment too. Exactly. So whenever people have a heart attack or something like that, you need to have the thing that can save them. Could be. So basically our first target market will be healthcare. We're now working with laboratories in Switzerland. We do blood delivery. So all the laboratories that are peripheral will be connected to the central laboratory on an ongoing basis using an air bridge from the drone. So that means three kilos of blood. How many kilos? Up to three kilos. Three kilos of blood. It's a lot. Is that enough for emergency? That's more than enough. And it happens a lot that there's emergencies right now and there's no solution. So with the laboratories, it's not only emergencies, but we do an ongoing route. Every day we collect all the bloods that patients are taking to do a lab test and bringing them to the laboratories. Because you need to be quick. Exactly. That's the efficiency. And also in cases of emergency more in the African world, when there is an emergency, you need to send blood, but this is a blood bag. And you can put three liters of blood bags and send it all the way to 80 kilometers to the clinic. So one thing I was always thinking that drone companies could do potentially is do a battery swapping. But you don't need that. You have 80 kilometers of range. How can there be enough power for that? Where's the batteries? The batteries are holding inside here. The batteries are here inside in the front. Yes. So the front will be swappable. So only this part here is the battery. And all the rest is cargo. And this battery is enough for 80 kilometers? Yes. Basically, any fixed wing is very efficient on its own. So basically, we have the lift from the wings that allows us to only use this propeller. The only inefficient time, it's 1% of the time where you're landing and taking off when you use the full motors. But two lithium-polymitter batteries are enough for our mission right now. So I'm thinking definitely you should be able to swap the front. We could. It's automated. So whenever you need, you just swap the front. This is why we're actually in the middle of financing round to do all these things. So we want to start the operations. We want to increase the engineering on swapping batteries and all these features. But the one that I'm seeing behind you up there, does it fly? Is it real? This one here, that's a marketing mock-up. If you see, there is holes where the ESCs go. So that's a component that we're not bringing that there's holes for the ESC. What is the ESC? The ESC is the control, speed control from the motors. So what actually tells the motor at which speed needs to turn every time and controls the current goes in and out. So marketing mock-up, do you have another, is it flying for real or is it still a project? No, no, no. We're flying for real. We fly every day in Switzerland. And we have, the operations are starting the first of January with the clients. So it's real. It's flying. First of January operations. So Google has tried, they haven't really done it yet. Everybody wants this, right? So are you the best in doing this ultimate drone delivery dream or...? So we're quite new. The main thing is that we're focusing on another type of deliveries. Google, Marinette, all these big companies, Amazon, they're focused on urban deliveries and they're good at it. We're focusing on intercity deliveries. We want to connect cities. That's why we fly long range. But we're not actually looking at the urban market. It's too small for us. Couldn't you also be part of all the cities too? It doesn't make sense. Vertical is good in the city too. Exactly, but it doesn't make sense to have a drone that size if I'm going to do five kilometers. Oh yeah. I think that's why I don't see them as a competitor to us. But all the villages. Yes, exactly. That's where we are complementary. That's where 80% of people are. Not quite, but that's where a lot of people are. Yes, and I think there's two models. In Switzerland there's a lot of it. Exactly. So Switzerland is good for intercity. This is why being a Swiss company makes sense for us to start by intercity. There are other mega-urban that will be good for urban drones. So I think we can all coexist there and there's enough space and room for all of us. So first of January in Switzerland I can go and click buy something and in 15 minutes it's outside. What's the ultimate dream? So we're starting the operation with one route and it's mainly going to be blood delivery for blood samples in this case. I think e-commerce will come later at a later stage. Later in 2020? No, no. When regulations allow. I think regulators are actually now working on that. Right now it's only allowed to do A to B deliveries so you need to state the points where you're taking off and landing at all times. So for now we need to find use cases that make sense on a B to B basis. So inside the same company. Not you order something one day and the drone comes to your backyard. But let's say I'm a regulator and I say go ahead. How far in the future do we have this? We're ready. So for us we're ready when the regulations state that. So for us to do multiple point deliveries or point to point is only a matter of the regulators allowing it. But could you have a system that automates the loading and unloading and all that stuff? We have it so right now the drone that you see here can, there's another version that can open underneath and drop a package if we need to. Under? Under, yeah. So it can drop a package if needed. Right now because of the operations that we're doing we don't really need that yet. But if e-commerce starts being an actual reality then we will start dropping the package. The weather proof package and boom. It's just in the garden. Exactly. And when you come home it's there. Exactly. All right. Cool. Talk about pricing or business models or anything? We can. I'm not going to give specific prices but the main idea that we have here what it compares to all the drones is that this is not a single use drone or use that you do every once in a while. Here you have a drone that needs to be operating all the time at least four hours a day. That's the minimum for these drones to be viable. And that comes with maintenance. So our thinking is not to sell just a hardware but basically it's a whole maintenance solution where you have software, the cloud software that comes with it that controls all the deliveries and tracks on the deliveries. You have the call chain boxes that you need inside and the drones and the landing sites and it's a monthly payment for that service. We're not 24 hours during the day of operation. Yes. If it's needed you can do 24 hours of operation.