The project discusses a B2B business model. The problem solved by DroneAcharya, its USP, customer segments, existing competitors, distribution channels, cost structure and revenue stream has been explained in the report.

1. Business Plan : Drone-Acharya

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INDEX
S. No. Topic Page No.
I. Introduction 3
II. Problem that Drone-Acharya is Solving 5
III. USP of Drone-Acharya 7
IV. Customer Segments 8
V. Existing Competitors of Drone-Acharya 10
VI. Distribution Channels 13
VII. Cost structure for Drone-Acharya 15
VIII. Revenue Stream for Drone-Acharya 18

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I. Introduction
Technology continues to advance day by day, and advance radically, such as in industries such
as IT, healthcare, etc. but in the logistics area, it has been lacking. Logistics is generally the
detailed organization and implementation of a complex operation. In a general business sense,
logistics is the management of the flow of things between the point of origin and the point of
consumption to meet the requirements of customers or corporations. Shipping and delivery
have been relatively the same for years and years. With an introduction of drone delivery, the
industry is finally advancing and growing.
Hopping onto the growth in this industry, we introduced our brand to the world of logistics
which we called Drone-Acharya.
The name Drone-Acharya is self-explanatory with our tagline – Guru for all Delivery Systems.

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1.1 Our Logo
The logo clearly indicates the service provided by us with the bulb in the middle signifying
knowledge and expertise in the field. Our aim is to innovate in the logistics field to help
companies move forward with the fast-pacing technological advancements while being the
leading delivery partner for both e-commerce and offline businesses.
We basically wanted to help the logistics industry flourish by helping MNCs who have not
taken the plunge yet into fast forward technology such as Drone Delivery. Thus, the
introduction of Drone-Acharya. Drone- Acharya is basically a B2B logistics company
specializing in drone delivery which is a service different companies can get outsourced
from us.
Many MNCs such as Amazon and FedEx have taken the initiative to move forward in this
sector. These MNCs have collaborate with external manufacturers of similar delivery
products such as drones but have still not started indulging in Drone Delivery completely.

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II. Problem that Drone-Acharya is Solving
A drone delivery service is one of the greatest inventions and most innovative accelerations in
business logistics. Drone-Acharya, which is the best of its kind, can help lower operational
costs significantly, deliver products and supplies to businesses and customers easily without
any labour work and also eliminate middle men and many necessary formalities. Keeping in
mind the local rules and regulations, this drone delivery service can help solve many problems
and can benefit businesses immensely.
Though our drones are not expected to replace semi-trucks and large loading trucks anytime
soon, these can help enhance business possibilities in many ways and work on integral
elements such as safety. The impact of drone delivery systems to the business logistics sector
is huge. Let us look at some of the opportunities created and problems that are being solved by
our drone delivery service.
i. One of the major problems that drone delivery will be solving for the customers of
today is the amount of time taken by manual deliveries. With the help of a drone
delivery service, we can help eliminate many factors that a delivery person would
take in order to deliver products to the location like traffic, conveyance, weather
conditions, road conditions, etc. In many possible areas within the range, timely
deliveries can be made hassle-free.
ii. Another problem which drone delivery can help eliminate is the safety of the
consumer. Consumer safety is one of the most important aspects for businesses
relations with the public. In a recent case with the company Zomato, there was an
incident involving a female customer and a male delivery agent of the company.
There was a problem of the delivery of food being late and following that there was a
physical fight between the delivery agent and the customer. Even though we cannot
conclude who was responsible for this disagreement, this kind of situation leaves a
bad mark on the company as well as the delivery and logistics services. Drone

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delivery helps eliminate safety issues in the society as it is an automated and no-
contact delivery system.
iii. One more pressing concern that is faced by the society is the environmental issues.
With manual deliveries, the amount of noise pollution, air pollution and traffic jams
created are certainly increasing and creating havoc on the streets of cities and big
towns. With the help of a drone delivery service, we can eliminate major traffic jams
as well as a significant amount of air and noise pollution as many delivery agents will
be off the roads and the work will be done by automated drones.
iv. A drone delivery service can largely help in decreasing the amount of workload and
concern companies have to put in the entire delivery task force. Manual deliveries
require the hiring company to do thorough background checks of each individual
delivery person that is hired. With the help of the drone Acharya, we can reduce the
company’s effort and concern and save businesses tonnes of time on employee
verification as the drones are automated and do not need manual assistance to make
deliveries.
v. Lastly, but surely one of the top problems being solved by our drone Acharya is how
this drone delivery service can help take businesses to the next level in terms of
technology and help them stay up to date with the ongoing trends in this particular
sector. Drone delivery services are the future of B2B marketing and company
logistics, and the best way to keep businesses ahead in the technology sector is to
choose the best drone service in the market.

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III. USP of Drone-Acharya
The unique selling point of a product is what makes the product better than its competitors. It
helps set the product apart from similar ones in the market.
The unique selling point of our product, Drone-Acharya is that the noise most drones usually
make while carrying out their delivery is reduced by more than 70%. This feature will set us
apart from the existing products in the market, as currently the drones available in the market
are extremely loud. This causes unwanted attention as well as disruption in the environment.
It also scares wildlife, such as birds and small animals, and as we are an environmentally
conscious brand, we believe with the less noise pollution, they will be disturbed less. Our
product will not have the same negative connotation associated with other drones.
Another unique selling point regarding our product is that we use solar cells in addition to
lithium ion batteries to recharge the batteries for the drone. This is different from others, as
other drone makers do not use solar cells that can be charged by the sun rays. This makes our
product more environment friendly and makes use of natural energy for power generation.
With these unique perspectives about our drones, we believe that our product features will
really set us apart from the other similar products in the market and give us an edge.

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IV. Customer Segments
Drone-acharya provides drone delivery service to various existing businesses whether it is e-
commerce or offline stores.
The drone package delivery market is projected to grow from USD 528 million in 2020 to USD
39,013 million by 2030, at a CAGR of 53.8% from 2020 to 2030. Various prominent and
emerging goods delivery technologies such as UAS are laying a critical role during the
COVID-19 pandemic.
Based on the end-use sector, the target drones’ market is segmented into defence and
commercial. Drone-acharya is mainly targeting commercial businesses that deliver products to
the doorsteps of the customers for their convenience. Apart from B2C businesses, Drone-
acharya also assists e-commerce giants in displacing their packages from the manufacturing
units to the warehouses.
So, these being our major targets, let’s dig deeper into the segments.
● E-Commerce Businesses
Businesses such as Flipkart are looking to expand their business by using drone delivery
systems to effectively minimise cost and enhance economies of scale. By partnering with
such e-commerce companies, Drone-acharya can potentially be the number one partner
for other similar businesses.
Other giants in the same field such as Amazon and Zomato already use drone delivery in
particular geographical regions but we can provide services to them to help them expand
to more target areas. Plus, we can provide lucrative offers to them so that they prefer
outsourcing this service from us rather than heavily investing on the set up themselves.
● Offline MNCs
MNC’s have a need to get their products from the manufacturing unit to various
warehouses across different regions. Then through wholesalers, these products are

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displayed for sale at retail stores. Thus, Drone-acharya will help these MNC’s efficiently
transfer their products from the manufacturing units to the warehouses. This will help the
business prioritise their service and outsource the delivery which in the long run will give
the greater return on their investment.
● Hospitals/Pharmacies
Due to the onset of covid 19, many pharmaceutical companies and hospitals have been
wanting to venture into drone delivery for faster delivery at any point of time. This
technology has been used abroad but not so much in India due to the lack of
infrastructure in some geographical areas. Drone-Acharya will assist such organisations
in fast delivery and will provide good deals for them.
We might also consider expanding to the defence sector once we channelise our resources
effectively in the commercial sector. It is a part of our 10 year plan but that is subjective to
our success in the commercial market because expanding to a completely new market
would require a lot of resources and would also incur a lot of cost. Thus, a ROI analysis
would help us establish ourselves in new markets.

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V. Existing Competitors of Drone-Acharya
• Wing
Wing, a division of Alphabet, launched in 2012. It offers a small drone and OpenSky
navigation system for package delivery. Wing’s drone is designed to deliver small
packages that weigh approximately 3.3 pounds or less. Customers do not interact directly
with the delivery drone. The aircraft hovers around 20 feet above the ground and lowers
the package to the ground slowly, attached to a tether. The first company to receive Air
Carrier certification for the FAA, Wing has conducted more than 100,000 flights across
three continents.
Partnered with FedEx and Walgreens, as well as local businesses, Wing saw a sharp
increase in demand last summer, due to the pandemic, with many stay-at-home
consumers. Wing is currently operating in four locations: Christiansburg, Virginia (U.S.),
Helsinki (Finland), and Canberra and Logan City (both in Australia).
• Amazon Prime Air
Prime Air will deliver packages up to 5 pounds in 30 minutes or less using small drones.
Amazon has been developing and testing the platform through Prime Air development
centers in the U.S., the U.K., Austria, France, and Israel. In August 2020, Amazon
received approval from the FAA to operate its Prime Air delivery drones to “safely and
efficiently” deliver packages to customers.
In 2019, at the re:MARS conference, Amazon unveiled its latest Prime Air drone design.
Amazon was granted patents for its ground-based mobile drone fulfillment and
maintenance carriers in 2017.
• UPS Flight Forward
UPS Flight Forward was the first company to get the U.S. government’s full certification
to operate a drone airline. In 2019, UPS Flight Forward teamed with Matternet, an

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autonomous drone logistics platform, to deliver medical supplies to WakeMed hospital in
Raleigh, North Carolina.
In 2020, UPS Flight Forward and CVS partnered to deliver prescription medicines from a
CVS pharmacy to The Villages, Florida, the largest U.S. retirement community, home to
more than 135,000 residents. UPS has also partnered with Wingcopter (below) to develop
a next-generation of package delivery drones for various uses in the United States and
internationally.
• Flytrex
Flytrex offers an end-to-end delivery service using automated drones for retailers,
ecommerce marketplaces, restaurants, and delivery companies. Flytrex drones can carry
packages weighing up to 6.6 pounds and are capable of flying approximately 6.2 miles.
Started in Israel in 2013 as a supplier for drone manufacturers, Flytrex became one of the
first commercial drone operators, delivering groceries and other goods in Reykjavik,
Iceland. Flytrex also has test programs in North Dakota and North Carolina. In
September, Walmart announced it would begin using Flytrex drones as part of a pilot
program in Fayetteville, North Carolina.
• Wingcopter
Wingcopter provides drone services for commercial and humanitarian applications,
including medical air services, drone operators, and logistics companies. Based in
Germany, Wingcopter is developing delivery options for postal services, retailers, and
ecommerce platforms to integrate into existing supply chains. Wingcopter began as a
manufacturer of drones, but it now offers drone delivery-as-a-service as well.
Wingcopter has already operated commercially in a few international markets, including
Vanuatu in the South Pacific Ocean in partnership with Unicef for vaccine delivery to
remote areas and in Ireland, where it completed the world’s first delivery of insulin by
drone beyond visual line of sight.

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• Zipline
Founded in 2014, Zipline delivers critical and lifesaving products, completing nearly
100,000 commercial deliveries so far. Zipline is based in San Francisco and operates
from distribution centers placed at the center of each service region. It hires and trains
local talent to oversee flight and fulfillment operations. Zipline’s mission is to provide
every human on Earth with quick access to vital medical supplies, believing drones offer
a transformational change in logistics.
• DHL Parcelcopter
DHL Parcelcopter is an autonomous drone that can carry a payload of up to 4.4 pounds
and travel at speeds of around 43 miles per hour. In 2013, DHL Parcelcopter made its
maiden flight, transporting a small parcel weighing 1 kg from the east bank of the Rhine
River in Germany to DHL’s corporate headquarters on the west bank.
In 2016, during a three-month trial, private customers in the Bavarian ski resort of Reit
im Winkl and on the nearby Winklmoosalm mountain were invited to initiate automated
shipment and delivery by Parcelcopter. This resulted in 130 deliveries between the
locations, each within 8 minutes of take-off, a trip that takes 30 minutes by car in the
winter.
In 2018, DHL Parcelcopter 4.0 was used as a rapid response service to deliver medicines
in East Africa. Over a six-month period, it completed the 37 km flight from the mainland
to an island in 40 minutes on average. Over 1,360 miles were flown, and roughly 2,000
flight minutes were recorded.
• Boeing
Boeing is focused on larger unmanned cargo air vehicles as it continues to test its
autonomous flight technology. Boeing is also funding drone projects through its Boeing
Horizon X Ventures, such as an investment round for Matternet, the drone logistics
platform.

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VI. Distribution Channels
Distribution channels are chains of intermediaries to provide the product or services to a
customer or a company. Distribution channels are either direct or indirect. In the direct
distribution channels, the manufacturer supplies the end product directly to consumers,
whereas indirect involves multiple intermediaries before the end product reaches the hands of
the customers. The various distribution channels are:
● Direct Distribution Channel
Direct distribution channels are selling or marketing products directly from the
manufacturer to consumers. Direct distribution is the oldest method of selling goods or
services to consumers.
● Selling through Intermediaries
A marketing channel in which various intermediaries such as wholesalers, retailers etc
participate in the distribution channel to transfer the end product to the customers.
● Dual Distribution
A type of distribution channel in which intermediaries acts in multiple distribution channels
to transfer the end product to consumers. For example- the customer who wants to buy a
single quantity of the product will go to the retail store, whereas the consumer who wants
to buy the product in bulk quantities will go to the wholesaler. The dual distribution channel
helps in acquiring a major share of the market.
● Multi-Channel Distribution
Multi-channel distribution involves multiple retailers, websites leading to multiple
channels of distribution connected to each other in one way or another making a multi-
channel distribution.

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Drone-acharya will act as an intermediary or conduit for the transfer of various goods in the
distribution channels. The company will provide logistics services to various businesses as
well as customers for the transportation of goods. Drone-acharya intends to act as a medium
to transfer goods and provide services to various customers, mainly e-commerce websites to
provide them access to easy logistics services. The company aims to be a part of every
distribution channel, revolutionizing the drone delivery industry. The company will provide
the mode of transportation mainly for b2b services but also b2c. The focus of drone-acharya
will be to make transportation of goods more accessible, time effective and sustainable.
The process of transporting goods is a simple yet lengthy and time-intensive process. Since a
significant amount of capital is invested both in the beginning and in a constant manner, there
is lesser room for mistakes and the steps involved in completing deliveries all require frequent
monitoring and tracking. The following are the steps involved in the distribution channel:
i. Verifying details of the buyer of product(s) to be transported- The process involves
verifying details of the products such as the number of products to be delivered, the
weight of the package, size of the package etc.
ii. Procuring the products to be transported from the business client.
iii. Completing delivery process
iv. Recording details of distribution- Recording the details of distribution for tracking
orders and keeping track of records.
v. Verifying the details of the delivery received- verification of the receipts of delivered
products.

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VII. Cost structure for Drone-Acharya
Drones range in price from a few hundred dollars to several million dollars. Drone-Acharya
costs between INR 2.3 lakh and INR 3.7 lakh. (About INR 75 thousand to INR 1.5 lakh for the
drone, and INR 2.5 lakh for software and maintenance.) For a 24-hour operation, this will cost
INR 5.6 lakh (189 drones), or INR 11.38 lakh for a 12-hour operation (384 drones). People,
loading, and monitoring costs for truck and drone delivery are expected to be almost identical
per product, according to our estimates.
As Drone-Acharya replaces labor and vehicles in manufacturing delivery services with more
specialized capital and manpower, it is a labor-saving/capital-using technology. The Drone-
Acharya's package delivery app does this by using drones instead of cars. A driver is required
for each vehicle, whereas the drone is led by computer codes broadcast over the internet, as
well as personnel for flight monitoring. A single drone operator will be in charge of many
drones.
Examining the cost of UPS delivery. He assumes that an average UPS driver earns Rs.1500
per hour for delivering packages for 10 hours per day. After factoring in petrol and fees, but
not truck capital or maintenance expenditures, the cost of delivery by truck amounts to around
Rs.2,200 per hour. We also learned that, according to a UPS driver forum, a UPS driver may
deliver up to 250 packages each day. The average shipping cost per shipment is Rs.88. This
excludes the expenses of delivering products to UPS centers, as well as the costs of gasoline
and other transportation, as well as any fringe benefits or other contractual fees.
The overall cost of drone delivery in three shifts over 24 hours each day is:
= Capital Cost * # Drones + Delivery Cost * # Drone/7,562,790 packages
= Value for money
= (2.96 lakh* 189 + 2.96 lakh*189)/ (7,562,790 packages)
= ₹14.83

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These per-package rates are for delivery on the busiest or "most efficient" day of the week.
Even yet, the cost of a box delivered by drone is one-third or less of the cost of a delivery
delivered by UPS. And that 88 figure doesn't include the vehicle's price tag. As the commercial
usage of drones expands, the cost of a drone is expected to decrease owing to manufacturing
economies of scale. On the other side, on less busy days, the cost of delivering a product by
drone increases.
The costs of Drone-Acharya include things like establishing up and managing delivery stations,
investing in research and development, and lobbying the FAA. Drone-acharya station buildings
and land, computers and monitoring software systems for drone flights, on-site computer
technicians and drone-acharya monitors, robotics engineers for maintenance and upgrades,
building utility costs, logistics management team to oversee operations, and potential insurance
and legal fees associated with drone-acharya are among the other costs. Drone-acharya may
also face legal costs if it is discovered operating in unlicensed airspace, is shot down by
humans, or lands in an unlicensed place, among other things.
Drone-delivering acharya's style is one-of-a-kind. The thought of having a product delivered
by a drone is sure to excite many individuals in the delivery area. Another advantage will be a
faster delivery reaction time. Drone deliveries will almost certainly take less time than driving
on average. Customers now have the choice of purchasing the goods at a store or waiting for
it to be delivered to their door over many days. The goods are delivered to the consumer
without the need to drive and with only a brief wait period. Longer-range drones flying from a
metro station might help reduce delivery costs to rural regions, which is conceivable – if not
probable.
The COVID-19 pandemic has created short-term disruptions and long-term structural changes
due to which the e-commerce sector is experiencing sluggish growth in new online categories
such as groceries and home care. This has enabled suppliers to adopt autonomous means such
as drones and robots to deliver goods to the customer without human involvement.

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The demand for faster delivery of packages is increasing, with customers willing to pay extra
for same-day delivery. With innovation in cargo transportation and increasing investments
from logistics & transportation companies, the use of delivery drones in e-commerce, quick
service restaurants, convenience stores, and the healthcare sector, among others, is increasing.

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VIII. Revenue Stream for Drone-Acharya
Let us look at the revenue streams of Drone - Acharya.
i. Transaction based Revenue:
Proceeds from sales of goods that are usually customer payments. In our case we are
looking at a one-time higher delivery charge for the customers who don't want to use
the service every time but want fast delivery on some products.
ii. Service Revenue
Revenues are generated by providing service to customers and are calculated based on
time. In this case based on how fast the customer wants delivery, 0-2 hours, 2-6 hours,
one day and next day delivery will be options.
iii. Subscription Fees
For those customers who want drone delivery every time we would look at creating a
subscription service like amazon Prime, where the customer can avail our service for a
one-time charge
iv. Advertising Fees
Advertising revenue over our App, website and even on the delivery system itself is a
stream that can generate long term revenue for the company by offering long term
advertising contracts only to top companies without a conflict of interest.
v. Project Revenue
Revenues earned through one-time projects with existing or new customers. These
revenues are those that are earned beyond the regular streams of revenue.
We can look at streams like:
● Military: To transfer the weapons or messages discretely.
● Healthcare: To transfer any medicine on an urgent basis.
● Business: Our regular service of transferring goods.