Walmart (NYSE: WMT) announced on Tuesday that it will be expanding its drone delivery service network across 6 states this year, making it possible for about 4 million US households to get eligible items delivered within 30 minutes or less.
The expansion is a partnership with DroneUp, a drone service startup through which the retail giant will be able to include 34 sites across Arizona, Arkansas, Florida, Texas, Utah, and Virginia to their delivery network by the end of the year.
The service will allow customers to order from tens of thousands of eligible items, such as Tylenol, diapers, and hot dog buns, and have them delivered by air. The service will be available from 8:00 a.m. and 8:00 p.m, and each delivery, priced at US$3.99, has a total weight limit of up to 10 pounds.
Walmart has been developing and testing this solution through a few existing DroneUp hubs in stores in North Carolina and near its northwest Arkansas headquarters. In the announcement, David Guggina, Senior Vice President of Innovation and Automation, shared that they’ve “seen firsthand how drones can offer customers a practical solution for getting certain items, fast.” He added that they have, more importantly, received positive response from those who’ve used the service.
Once a customer uses the service to place an order, the item is picked, packaged, loaded into the drone, and then the package is gently lowered right onto their yard using a cable. Each drone delivery will be fulfilled by a certified pilot operating within FAA guidelines.
Guggina also added that one great feature of the service is that it enables people in the communities to also get access to DroneUp’s drone solutions for their business. “For example, a local construction agency can work with DroneUp to monitor on-site job progress through aerial drone photography,” he wrote.”
The company is expecting that the drone industry will also benefit from the service as they’ll be able to gather more flight data, as current and future operators work together to grow the industry in a safe and regulated manner.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
