The drones that save lives. A feasibility study in Cambodia
Conducting a feasibility study on placing a business like the company Zipline in Battambang, Cambodia. We will be analysing if it is feasible to have this type of business model, technology and strategy of the company for the region. We wanted to look at a social enterprise that takes advantage of technology to help resolve a problem. We admire Ziplines approach and they leave no gaps in their strategy to ensure the success of their solution.
But, what is Zipline?
Zipline is a logistics/technology start-up with the mission “to provide every human on Earth with instant access to vital medical supplies”(flyzipline.com). Identifying a problem with uneven distribution of blood donations and wastage around the world. One of the main factors contributing to this: difficulty to predict demand for blood. This social enterprise provides a solution with a distribution centre that can store the supply of blood and the use of drones for fast delivery. It gives a fast delivery option to medical clinics in rural areas that are hard to reach due to unpaved roads and lack the resources to properly store supplies. It also allows hospitals to not overstock on supplies and avoid wastage. Essentially the redistribution of blood supply to save lives. The company operates from distribution centers delivering medical supplies and blood via a line of custom made drones. The drones are autonomous, electric and travel at a speed of 100km/h. Battery powered drones making them an environmentally friendly solution. The drones can span a distance of 160kms giving them an 80 km delivery range from the distribution centers. The most impressive part of their operations is the speed at which the deliveries are set up. Within 10 mins of receiving a request through text or web, the delivery is sent out reaching its destination in 20–30 minutes. Each drone can carry 1.5kgs which equals the weight of three blood bags. The delivery box attached to a parachute is dropped from the drone to an agreed pick up point. They partner with hospitals and clinics who can contact them via text or online. When the package is 1 minute away they receive a text to notify them that delivery is arriving.
The company tested their operations in Rwanda, Africa successfully operating on a national scale by obtaining a commercial contract from the government and ministry of health to deliver a majority of blood on demand. They coordinate with the airport traffic control to ensure they are clear for deliveries. Zipline employs local talent to run their operations contributing to job creation. The Company supports the recruitment of local staff rewarding technological and medical skills and rewarding employees with benefits including healthcare, parental leave and monthly wellness stipend.
Based in California and currently working with hospitals in Rwanda and Ghana and plans to expand to India and the Philippines as well. The system is simple: any hospital can request a blood delivery at any time, and Zipline will send a drone in the shortest time possible, guaranteeing precision in delivery and speed. Since its creation to date, Zipline has made more than 30,000 deliveries.
figure 1: A breakdown of Zipline Business model*
Why Battambang?
The province of Battambang is the second-largest city in Cambodia located in the north-west of the country with 1024663 inhabitants. It is representative of the social problems ranging from a line of disasters that occurred in the country from 2005 to 2017 ranking them 4th highest number of disasters in the country. The ranking based on the number of lives lost due to disasters and first in the Damaged and Destroyed Housing.
Also, Battambang suffers from structural problems such as lack of adequate road infrastructure, which do not allow hospitals to be reached in a short time, as well as social problems such as the lack of water for all and the presence of landmines, which make some areas very dangerous to travel on the ground.
Our study will be based on the model of the company Zipline in Battambang, Cambodia
Feasibility study:
Preliminary analysis
Supply and Demand:
Blood
Cambodia, through the National Blood Transfusion Center, receives on average 75,000 donations of blood units annually, while blood centers require 85,000 units. Showing a gap in the number of medical supplies. According to WHO, Global Status Report on blood safety and availability 2016 the Global Fund, PEPFAR, CDC, WHO, American Red Cross Blood Services, Australian Red Cross are in place to assist the process of increasing access to blood donations in the country.
Immunisation
Cambodia has the highest number of cases of tuberculosis(TB) in the world with 36000 cases in a population of 16 million people as of 2015. Malaria is also a major health concern in Cambodia particularly to villagers in rural areas. The International Vaccination Center at the Institut Pasteur du Cambodge in Phnom Penh Cambodia attempts to combat TB, malaria and other diseases with an expanded program on Immunisation to the general public.
Benefits:
The International Vaccination Center at the Institut Pasteur du Cambodge works on a program to facilitate immunisation across Cambodia. Showing potential for a partnership for a company like Zipline to assist in the distribution of immunisation across the country. Improving shipments of blood units can support the deployment phase, potentially saving more lives and implementing the whole process. They may also partner with the national blood transfusion centre and other NGO’s already in place to facilitate the process of blood distribution.
Weaknesses:
Currently the price of deliveries via drones are approximately a 15–20$ per delivery for 1.5kgs. A cost benefit analysis would need to be done based on current spending of medical centres and government funded projects. This would need to be done to understand how the cost structure could work in Cambodia. To ensure its success national investment and donations to boost the projects success.
Market Survey
Based on our analysis of Zipline operations we assessed a range of factors to decide whether they would be able to function in the region. Factors include medical facilities, infrastructure analysis, mobile network.
Infrastructure
The Asian Development Bank report on Cambodias transport strategy 2019() provides information on road infrastructure in the region. Shows that rural road length at 45,242 Kms accounting for 73,5% of the roads in Cambodia with only 5% of the roads are paved.
There are issues with flooding occur in Phnom Penh and in other parts of Cambodia during the rainy season and can cause roads to become flooded.
Medical Facilities
As seen in the figure 2 below there is a number of medical facilities within range from the town centre of Battambang. We created this map to illustrate the potential partners for a distribution start up in the region. The facilities range in hospitals, clinics and medical centers found via google maps.
Legend: Red: Hospitals, Yellow: Clinics, Green: Medical Centers
Figure 2: A spread of hospitals, clinics and medical centers around the Battambang region. With Lines indicating an 80Km range *
Mobile network
There are three major operators of mobile networks in Cambodia. As 4G availability increases, overall speeds available to consumers are holding steady as LTE signals become easier to find.
The increasing level of 4G networks gives the possibility to drones to work operatively and without technical issues.
Operations
This would need to be properly assessed via field research including the ability to:
-Regulate drone deliveries via air traffic control in the region.
-Distribution centre could receive the supply from the blood donor organisations already located in the city centers of Battambang and Phnom Penh.
-Check for medical supply vendors
Findings
There is a number of medical facilities within an 80 km range of the Battambang center. This shows the potential spread Zipline could have in partnering with hospitals, clinics, and medical centers. In the case of an emergency, medical centres located far from the centre would need 3+ hours to maybe receive the supplies they need. They have the facilities needed to assist the establishment and distribution of the blood of a distribution center. The land around Battambang, the second-largest city in Cambodia dominantly made of farm land, giving limited road access. The infrastructure is largely rural with a large percentage of unpaved roads that are difficult for smooth transportation, inaccessible or require lengthy travel time. Battambang reaching the 4th highest number of disasters in the national Index of the country with a large population to support demonstrates a need for medical assistance. Problems with disasters and flooding indicate likely hood for a high number of emergency situations that could occur. The 4G network in Cambodia allows autonomous tech work.
Our research is limited as sources for Cambodia are limited with further research needed to assess the success of a business model like Ziplines in the region. Primary research is including field research and surveys investigating the current medical centres, blood donation and immunisation facilities are required to further understanding the market. Based on secondary research we see the need for a solution like Zipline to improve the accessibility to blood and medical supplies.
Disclaimer
We are not affiliated or associated with the company Zipline. We decided to analyse the company because we love the purpose it serves.
Authors
This article is made by three students of Apple Developer Academy Unina in Naples: Michele Avano, Arige Mansoor, Valentino Piccolo, for the challenge "NCX-Business Path".
References
WHO, Global Status Report on blood safety and availability 2016: https://apps.who.int/iris/bitstream/handle/10665/254987/9789241565431-eng.pdf;jsessionid=BA419AF93535421C6BAF086E58524E83?sequence=1
https://www.pasteur-kh.org/tuberculosis/
T.Fukayama, Cambodia — transport sector assessment, strategy and road map 2019, by Asian Development Bank, 2019
https://www.cellcard.com.kh/en/network/
https://www.opensignal.com/reports/2018/08/cambodia/state-of-the-mobile-network
Cambodia, Disaster management reference handbook: //reliefweb.int/sites/reliefweb.int/files/resources/CFE%20DM%20Reference%20Handbook-Cambodia%202017.pdf
