When Eric Peck founded Swoop Aero in 2017, he had a dream: to transform how the world moves by making access to the skies seamless.

For six years, Eric and his team lived this dream, changing lives in Africa and other parts of the world by delivering medical supplies to communities that could not be reached through conventional means of transport.

Sadly, Swoop Aro could not keep up with the costs of living their dream; and the company had to go into administration last year.

“Ultimately, the persistent demand for capital proved catastrophic, driving Eric and his team to commence the insolvency process in October 2024,” commercial drone industry research company Drone Industry Insights said recently.

“The decline started in 2023 when the company struggled to fulfil its clients’ product and performance readiness demands. Simultaneously, the drone industry faced a severe downturn due to a significant decrease in investments that extended beyond 2024 (a 75 percent reduction in total investments).”

The good news is that Swoop Aero’s liquidated assets have been snapped up by a newly formed automated aerial aviation company, Kite Aero.

The amounts involved were undisclosed at the time of writing this.

“No doubt, Swoop Aero built a great solution; we simply want to continue this journey with a new strategy,” said Kite Aero CEO Philip van der Burg, the former CEO of Carbonix, who – alongside other investors – purchased the key assets of Swoop Aero.

The new strategy would involve developing an open drone software platform that will enable integration for other drone manufacturers and operators.

Melbourne-based Kite Aero’s acquisition of Swoop Aero’s assets includes the renowned Kite drone and Swoop’s drone operations software platform, “ensuring continuity for existing autonomous aerial logistics customers, and creating a more robust business operation to build on the foundations Swoop established in the industry,” the new company said in a statement.

Swoop Aero had created a global leader in drone-based logistics, widely recognised for its revolutionary technology in autonomous delivery, particularly in critical healthcare supply chains: Kite Aero promised to uphold and expand on Swoop’s achievements.

“Kite Aero is committed to building on the strong foundation that Swoop established,” said van der Burg.

“The Kite drone and software platforms have already proven their value in enabling scalable drone logistics solutions, and we see tremendous potential in taking it to the next level. Our goal is to continue to enable safe, reliable, and impactful drone operations to communities and businesses worldwide.”

Kite Aero is led by a team with over 50 years of combined experience in aerospace technology and uncrewed aviation, bringing deep expertise in autonomous flight systems, avionics, and regulatory compliance.

This leadership is exceptionally well qualified to advance drone logistics and scale operations globally, the company added.

“The inherited flight operating system, which has logged more than 36,000 flights and over 20,000 flight hours, is a proven and robust platform for autonomous aerial operations.

“Opening the platform to third parties will empower partners and operators to leverage the technology for a wide range of applications, from logistics and emergency response to commercial drone services.”

In addition to advancing the Kite drone platform, Kite Aero will explore opportunities to re-engage former Swoop employees and industry partners to retain the expertise and innovation that drove Swoop’s success.

In their analysis, Drone Industry Insights reckon that – even though it is a strongly growing market – the combination of decreasing investment and lack of regulatory progress is still dragging the drone economy down and is likely to affect more start-ups in the future.

“While assets are affordable, the number of mergers and acquisitions will likely peak in 2025 – just like the drone companies that will leave the market for good,” DroneII said.

In its heyday, Swoop Aero’s Kites were a common sight in Mozambique and Malawi, as they partnered governments and non-government organisations like VillageReach in delivering medical supplies to communities that needed them.