How Zipline Outcompete Amazon In Drone Delivery | Keller Cliffton
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
Keller Clifton, co-founder and CEO of Zipline, shares the remarkable journey of building the world's first scaled autonomous logistics system from a cattle ranch in California to delivering life-saving medical supplies across eight countries. (01:03) The episode reveals how Zipline started with five people in construction trailers, evolved through numerous near-death moments, and ultimately created a system that has flown over 135 million autonomous miles with zero safety incidents. (27:00) Clifton discusses the company's expansion from delivering blood transfusions in Rwanda to serving major US companies like Walmart and Chipotle, while maintaining a remarkable 95 net promoter score. (63:14)
- Core themes include building resilient hardware companies, the importance of practical problem-solving over theoretical planning, and how serving underserved markets can create breakthrough innovation opportunities.
Speakers
Keller Clifton
Keller Clifton is the co-founder and CEO of Zipline, the world's largest autonomous logistics company. Before starting Zipline thirteen years ago, he was a professional rock climber who lived out of his Honda Fit and made $3,000 a year traveling the world. (11:20) Under his leadership, Zipline has grown from five people operating out of construction trailers to a company serving 5,000 hospitals and health facilities across eight countries, with operations that have saved an estimated 17,000 lives annually.
Key Takeaways
Embrace Controlled Failure as Your Competitive Advantage
Clifton reveals that successful hardware companies must accept that "nine out of 10 things you try on any given day are gonna fail." (28:04) Rather than being discouraged by failure, Zipline learned to be "motivated by failure and motivated by that learning and growth process." The key insight is that companies executing well can "rapidly iterate themselves out of pain" while those that don't remain stuck. (20:25) This mindset shift from craving success to embracing the iteration process became crucial for Zipline's survival through multiple near-bankruptcy moments.
Hire for Character Over Experience in Rapidly Evolving Companies
After making repeated hiring mistakes, Clifton identified four innate characteristics that predict success at fast-moving startups: practical problem solver, fast learner, low ego, and mission driven. (56:02) He learned that "whenever we hired for specific experience over innate characteristics, it was a huge mistake" because startup roles change so rapidly that specific experience becomes irrelevant within months. (55:14) People with the right character traits "practically couldn't fail" even when the company pivoted directions, while experienced hires often became irrelevant as soon as priorities shifted.
Choose Desperate Markets Over Comfortable Ones
Zipline's breakthrough came from targeting markets that traditional tech companies ignore. As Clifton explains, "the places that have the most access to technology are the places that appreciate it the least. 99% of the world isn't that. They're dying for innovation." (52:32) Rwanda became the perfect proving ground not despite its challenges, but because of them - the country operated "like a startup" with ministers available for calls at 10 PM on Saturdays. (16:37) This strategy forced Zipline to build more robust technology while creating genuine customer love and regulatory partnerships.
Build Your Own Testing Infrastructure to Move Fast Safely
Zipline invested heavily in both software-in-the-loop and hardware-in-the-loop (HITL) testing systems, learning from SpaceX's approach. (40:51) These systems allowed them to "catch 95% of software bugs without sending something to a test site and accidentally crashing an aircraft." (40:59) Combined with three major 24/7 test sites, this infrastructure enabled rapid iteration while maintaining safety - crucial for a company that couldn't afford a single safety incident while serving life-or-death medical deliveries.
Establish Daily Crisis Management Rituals
Zipline developed an 8:30 AM daily meeting that includes executives and individual contributors, operating seven days a week to address the "highest priority issues observed in the previous 24-hour period." (30:53) This structure eliminates hierarchy in crisis moments, giving front-line workers direct access to executive resources and decision-making. (31:47) The practice emerged from working with investor Valor during a critical period and became essential for managing a globally distributed hardware operation where "there's always something horrible going on." (32:23)
Statistics & Facts
- Zipline has flown 135 million commercial autonomous miles with zero safety incidents, making it one of the most proven autonomous systems in operation. (27:00)
- The company has reduced maternal mortality rates in Rwanda by 51%, according to a University of Pennsylvania study, and saves an estimated 17,000 lives annually across its operations. (49:29)
- Zipline's service maintains a 95 net promoter score compared to traditional delivery platforms which typically have negative scores between -10 and -20. (63:14)
