Walmart invests in DroneUp to speed up last-mile delivery

Walmart has been experimenting with last-mile delivery solutions, from autonomous electric vehicles to incentivizing sales associates to deliver packages on their way home from work. Now the company is aiming to deliver orders even faster with drones and compete with Amazon .

According to foreign media reports, Walmart is making an undisclosed investment in service provider DroneUp to accelerate last-mile delivery .

Walmart partnered with DroneUp last year to launch a trial for at-home delivery of Covid-19 self-collection kits. The trial showed that the retailer could provide customers with deliveries in minutes, not hours. “Now, after safely completing hundreds of drone deliveries at Walmart stores, we are investing in DroneUp to continue our work developing scalable last-mile delivery solutions,” said John Furner, president and CEO of Walmart U.S.

“As we continue to work to get our customers the goods they want, we know it will require a well-coordinated network of delivery solutions across streets, sidewalks and skies,” said John Furner. “Some of these solutions are still emerging, but they are already showing encouraging results.”

DroneUp operates an on-demand drone delivery network that matches its database of more than 10,000 Federal Aviation Administration-certified pilots with missions across the country. DroneUp operates commercially throughout the United States and is an authorized government drone service provider in 11 states, serving public sector organizations.

"Walmart and DroneUp are uniquely positioned to succeed in this new chapter of last-mile delivery," said Tom Walker, Founder and CEO of DroneUp. "Walmart's vast hub-and-spoke network, combined with DroneUp's extensive operational expertise, will unlock affordable, fast delivery and nationwide drone service."

Furner noted that Walmart already has the significant infrastructure needed for drone deliveries, including 4,700 stores stocking more than 100,000 of the most commonly purchased items located within 10 miles of 90% of the U.S. population.

“We are learning how these technologies can get customers the items they need,” a Walmart spokesperson said . “There is tremendous potential to enhance the services we already provide to millions of customers by providing fast package delivery, which will also increase the safety and efficiency of the overall transportation system.”

Walmart

One Mile Delivery

logistics