Skydio poised for $4M windfall from LAPD drone deal

In a major vote on Tuesday, the Board of Police Commissioners in Los Angeles unanimously approved a private donation that could send as much as $4 million to US drone maker Skydio.

A $2.1 million donation, routed through the Los Angeles Police Foundation, will help expand the Los Angeles Police Department’s “Drone as First Responder” program by funding drones, docking stations, and installation costs at police facilities across the city. Combined with a separate $1.8 million retail theft grant, the funds will be used to finance a three-year contract with Skydio covering equipment, warranties, and service.

If approved by the Los Angeles City Council later this month, the deal will significantly boost Skydio’s public safety footprint.

Under the LAPD’s plan, 17 drone docking stations will be installed across the city’s major divisions, with multiple docks allocated to high-traffic areas like Hollywood, Wilshire, West Los Angeles, and commercial hubs such as The Grove and Palisades Village. Skydio drones, fitted with high-definition and thermal imaging, will be positioned to fly to emergency scenes ahead of officers and stream live video back to command units — strengthening situational awareness and potentially helping officers assess dangerous situations before arriving.

Department leaders argue the technology improves response times, aids de-escalation, and could, in some cases, resolve calls without direct contact, a selling point for strained police resources in a city wrestling with budget shortfalls and contentious oversight debates. Critics, however, say the program expands surveillance on everyday Angelenos amid discussions to slash police video retention timelines.

The Los Angeles contract is just the latest in a broader uptick in government business for Skydio, which has carved out a major niche supplying US military and public safety agencies with autonomous drones. Earlier contracts include multi-million-dollar awards from the US Air Force to deploy advanced autonomous systems across mission-critical units, and a $7.9 million US Army contract to deliver tactical reconnaissance drones — part of a multi-year national security program.

Taken together, these deals have steadily increased Skydio’s government revenue, bringing in tens of millions of dollars and positioning it as a go-to supplier for agencies seeking modern, US-based drone systems.

Skydio’s moment comes amid dramatic changes in the US drone market. For years, DJI — a Chinese manufacturer that once dominated more than 70% of the American consumer drone market — was the default choice for police, fire departments, photographers, and hobbyists alike.

But over the past year, regulatory pressure culminated in the Federal Communications Commission moving to ban new DJI drones from the US market on national security grounds, adding the company to an FCC “Covered List” that effectively blocks authorization for new foreign-made models. While already-approved DJI aircraft still in the country can be used, future imports of new models are barred — a seismic shift that has left police and other agencies scrambling for alternatives.

That shift has created a once-in-a-generation opportunity for American manufacturers like Skydio. With future flights of new DJI hardware uncertain, states, cities, and federal agencies alike are turning toward domestic suppliers that meet US regulatory and national security requirements — a trend that could accelerate Skydio’s growth well beyond the Los Angeles deal.

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