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A Pentagon Spark
Dave Merrill’s conviction that the world needs big cargo drones crystallized during a 2017 Pentagon meeting when he listened to a US Marine describe the risks soldiers faced delivering supplies via ground convoys and helicopters in Afghanistan. When Merrill, founder and executive chairman of Elroy Air, showed the Marine a design of what would become the Chaparral aircraft, his response was immediate: “If I had that today, I’d take it back with me to Afghanistan when I ship out next month.”
That conversation galvanized Merrill to focus exclusively on big drone delivery. The decision looked even better as he heard similar needs expressed by major humanitarian aid organizations and FedEx.
Reaching the Unreachable
Merrill envisions the Chaparral, which carries as much as 300 pounds as far as 300 miles, enabling express shipping “to every person on the planet.” Elroy Air’s model changes the game: Instead of requiring airport locations or relying solely on ground transport, Chaparral can lift off from logistics hubs located close to customers and fly direct to other hubs, shortening the time cargo spends in the “middle mile.”
While traditional express logistics relies on hub-and-spoke systems such as FedEx’s Memphis model, vertical takeoff and landing (VTOL) drones add a layer of flexibility—linking facilities positioned at the edge of metro areas to other regional metros, remote areas or emergency zones. In Merrill’s words: “It’s better, faster, cheaper delivery that extends the network.”
Hybrid Innovation
The aircraft’s design centers on hybrid-electric propulsion—electric motors driving all rotors for simplicity and low maintenance, paired with a gas turbine generator for range extension. This hybrid approach allows Elroy Air to deliver many of the benefits of electric propulsion today without sacrificing range and preparing for a fully electric future as battery technology advances.
Sweating the Network
Chaparral’s modular cargo pods allow for quick turnaround: land, drop off one payload, immediately pick up another and take off again. “Sweating the asset”—maximizing vehicle use—equates to more profit, Merrill says. But the bigger story is sweating the network: When aircraft launch directly from strategically located logistics facilities, they amplify the value of those sites, turning warehouses into multimodal gateways for trucks, EV fleets and now aircraft.
The market seems to agree. Elroy has more than $3 billion in demand for over 1,500 aircraft from customers including major helicopter operator Bristow, FedEx and aircraft lessor LCI.
AI in the Cockpit
With Chaparral moving toward commercial deployment in the next few years, Elroy is busy conducting fully autonomous test flights. Merrill says artificial intelligence is proving transformative for accelerating aerodynamic design, and it will aid route optimization and weather avoidance. Humans will still monitor everyday flights, but no manual control is required.
Urban Edge, Remote Lifeline
Chaparral’s potential shines in places like remote Alaska, where bad weather can ground traditional aircraft fleets, leaving shelves empty and prescriptions undelivered. With no lives at risk, drones can operate in conditions too dangerous for human pilots.
But the story doesn’t end at the edge of the map. In dense cities from Los Angeles to London, drones provide a new way to leapfrog traffic, emissions zones and rising delivery demands. By operating directly from last-mile facilities near urban cores, Chaparral can bypass congestion and extend the promise of faster fulfillment without adding trucks to already-jammed streets.
Gateway to Zero Emissions
While Chaparral’s hybrid system isn’t zero-emission today, Merrill calls it a stepping stone to full electrification, as a future generation of the aircraft can replace its hybrid powertrain with additional batteries. Crucially, the shift will depend on improvements to battery technology and the availability of distributed charging infrastructure—much of it expected to sit at logistics hubs. As these logistics facilities evolve, they won’t just store and move goods; they’ll also become charging stations for EV trucks and electric aircraft alike.
Universal Delivery, Grounded in Proximity
Merrill sees express shipping becoming “as dependable as electricity or running water” – even in difficult-to-reach places. But rather than replacing existing infrastructure, Chaparral is designed to extend and enhance it—linking last-mile facilities to each other and customers faster, safer and cleaner.
From that Pentagon meeting to today’s $3 billion order book, the Chaparral reflects how addressing one sector’s challenges can unlock solutions that transform global commerce. The sky may be the new conveyor belt, but its strength lies in being anchored to the ground—at all the right places, close to the customer.
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