Walmart is investing in a company called DroneUp to help the retail giant turn drone deliveries into a reality.
Walmart made the announcement on Thursday, citing past successful flights using DroneUp’s services. Last September, the retail giant partnered with DroneUp on a trial to deliver COVID-19 at-home test kits to customers in Nevada and New York.
“The trial demonstrated we could offer customers delivery in minutes versus hours,” said Walmart US CEO John Furner. “Now, after safely completing hundreds of drone deliveries from Walmart stores, we’re making an investment in DroneUp to continue our work toward developing a scalable last-mile delivery solution.”
The key word is "scalable." Walmart has over 4,700 stores in the US. Collectively, the same stores are located within 10 miles of 90% of the US population, according to Furner. Hence, Walmart says it's “uniquely positioned to execute drone deliveries” to most Americans.
“Conducting drone deliveries at scale is within reach,” Furner added. “DroneUp’s expertise, combined with our retail footprint and proven history of logistics innovation, puts us right where we want to be for that day.”
Interestingly, DroneUp focuses on using certified human pilots, instead of automation, to fly the drones for commercial industries. The Virginia-based company works with over 10,000 pilots.
Left unsaid was how much Walmart is investing in the company. But according to DroneUp, the money will be used to build up the company’s flight and logistic systems, partner with drone manufacturers, and even help it make “strategic acquisitions.”
“In the coming months we’ll be beginning our first operation at a store in Bentonville, Arkansas,” Furner added.