Snap, the firm that created widely used social media platform Snapchat, wants to buy Chinese drone developer Zero Zero Robotics for between $150 and $200 million. Zero Zero is famous for its $500 Hover Camera Passport drone, developed for taking selfies and the tech could be used for Snapchat to create its own drone for using with the service.
Snapchat has 166 million users each day, 63% of them are between 18 and 34 years old, and 22% are between 13 and 17. That’s why the service’s young, engaged user base might purchase a drone if it developed one.
This type of user is a lot more connected than older generations, which means they may be more receptive to a drone made by Snapchat.
The acquisition of Zero Zero Robotics is the second drone tech purchase the company’s made in the last few months. Earlier in the year, it bought drone startup Ctrl Me Robotics and it’s apparently already developing a drone inhouse.
However, Business Insider’s Business Intelligence thinks DJI’s dominance in the sector could make it too hard for Snap to break into the market. The Chinese firm has 75% of the drone market share.
However, if Snap is able to break into the market, the potential rewards may be huge. Goldman Sachs said that worldwide consumer drone spending will top $13 billion between 2020 and now.
This implies that if Snap can create a drone and get some market share, it could end up being lucrative for the organisation as the market scales quickly in the next couple of years.