Ribbit, a cargo airline start-up developing software for autonomous flight, has signed a $1.3m contract with Transport Canada to begin testing self-flying aircraft in remote regions.

The company has completed over 200 hours of hands-free flight on a two-seat airplane, and is advancing operational testing in preparation for commercial service.

The company will provide Transport Canada with a single aircraft along with remote crew and maintenance services to sustain autonomous cargo flights for one year. Transport Canada will also leverage these data to help inform future aviation regulations, standards and policy.

Ribbit sees its technology as a solution to pressing logistical problems facing northern communities and businesses.

“Many rural and remote areas are served by larger airplanes that fly infrequently,” said Ribbit CEO Carl Pigeon. “Ribbit takes a smaller aircraft and uses autonomy to drastically change the unit economics of that plane. This lets us offer reliable next-day or two-day service and improve supply chains.”

Ribbit was issued a Special Flight Operations Certificate in 2022, authorising uncrewed flight tests, and the company has received letters of intent from retailers totalling $42m per year.

“We have been working with government, community and private partners to ensure this technology will serve a real need,” said Ribbit COO Jeremy Wang. “We are excited to enable a future where anybody can ship and receive goods quickly and reliably no matter where they are.”

The company is initially focused on shipping time-sensitive goods to northern Canada, where 50 million kilograms of food alone are sold annually. However, the long-term vision will see autonomous aircraft used for a wide range of cargo operations and aerial work.

“Be it air cargo, asset monitoring or maritime patrol, we have identified several applications for the technology,” Wang said. “Customers appreciate our ability to understand their operations deeply, then reimagine them with autonomy.”

Ribbit is a venture-backed cargo airline that uses self-flying airplanes to help businesses improve their supply chain and reach new markets. Founded in 2020, Ribbit has developed software that can autonomously operate airplanes and is credited with Canada’s first hands-free gate-to-gate flight.