Drone firm Manna has announced a “strategic pause” to its Irish delivery operations.
The company founded by entrepreneur Bobby Healy has faced a number of setbacks in recent weeks, including decisions by local councils that blocked its ability to operate drone delivery hubs in parts of Dublin.
The “strategic pause” will effectively ground its operations in Ireland for the time being.
A meeting is being held this afternoon with Manna staff to update them on the matter.
“This is a difficult decision because Ireland is where Manna was founded, built and first proven,” Healy said.
“We are incredibly grateful to the communities, businesses, customers and employees who helped show that drone delivery can work at scale. However, in the absence of a clear national pathway to scale commercial drone delivery, we have to focus our investment in markets where that pathway is now clear.”
The company, which has raised close to $110 million in funding and has almost 200 staff, has made the decision after securing approval of its investors.
The statement from Manna added that countries including the United States, United Kingdom, China and the UAE have rapidly developed drone regulations and the company would “concentrate its investment, talent and operational resources in markets where large-scale drone delivery is now a reality”.
In April, Manna announced plans to create 400 new jobs globally, with 300 to be based in Ireland. The company has confirmed the “employment growth at local operational delivery hubs in Ireland will not proceed at this time”.
It added that this decision “represents a strategic pause rather than a permanent withdrawal of delivery operations from Ireland”.
Manna has invested close to €50 million into its Irish operation since it was set up in 2019.
The funds have been used to both develop drone hardware and software in Ireland and provide delivery services for food, clothing, books and over-the-counter pharmaceuticals by drone.
Manna, owned by Manna Drone Delivery Inc in Delaware in the US, has completed 300,000 deliveries in Ireland.
The company’s operations in Ireland have faced some backlash from people who live near its hubs, from which drones take off, and on routes the drones typically fly.
Complaints have focused on noise pollution from the vehicles when they take off and fly over residential areas.
Manna has previously said it faces one complaint for every 500 deliveries completed.
Last month, a noise impact assessment commissioned by Manna and supplied to Dún Laoghaire-Rathdown County Council said its new drone hub being planned near Dundrum Town Centre would have “insignificant noise impact” on the area.
On Tuesday, Dún Laoghaire-Rathdown County Council refused Manna permission to create the new delivery hub to the rear of Holy Cross Church in Dundrum.
Last month, Fingal County Council also refused the company permission to continue to operate drone deliveries from a base in Coolmine Industrial Estate, Dublin 15.
In April, Cork City Council’s planning unit sent Manna warning letters raising concerns about its base at the Marina Market on Centre Park Road.
Healy has expanded Manna’s business beyond Ireland in recent years, announcing launches in Texas and Finland.
The company has also secured partnerships with Uber, Deliveroo, and Just Eat and teamed up with the Rotunda Hospital in Dublin to test the possibility of making urgent medical deliveries by drone.
Last month, the company confirmed it closed a $50 million (€43.4 million) fundraising round. Contributors to the investment round included Ark Invest, which has previously backed OpenAI and Tesla, Boston-based fund Schooner Capital, Coca-Cola HBC and the Ireland Strategic Investment Fund (ISIF).
The company has raised more than $100 million in funding to date and previously secured debt financing from HSBC Innovation Bank to fund growth of the company in 2023 and 2024.
Read the full article at The Irish Times →
Ireland