Kroger and Drone Express Partner to Provide Grocery Delivery by Drone

Rhea-AI Summary

The Kroger Co. (NYSE: KR) and Drone Express have initiated a pilot program for autonomous drone delivery aimed at enhancing Kroger's e-commerce capabilities. This innovation follows Kroger's impressive $10 billion e-commerce sales in 2020. The drone delivery system allows customers to receive groceries at their current location, including parks and beaches, with orders fulfilled within 15 minutes. The pilot will start test flights in Centerville, Ohio, with customer deliveries expected this spring, alongside a second pilot planned for Ralphs in California during summer.

Positive

• Launch of drone delivery pilot enhances Kroger's e-commerce offerings.
• E-commerce sales reached over $10 billion in 2020, indicating strong growth potential.
• Delivery within 15 minutes offers unparalleled convenience for customers.

Negative

• None.

CINCINNATI and MONROE, Ohio, May 3, 2021 /PRNewswire/ -- The Kroger Co. (NYSE: KR) and Drone Express, a division of TELEGRID Technologies, Inc., today announced a pilot to offer grocery delivery via autonomous drones, expanding the retailer's seamless ecosystem and providing customers with anything, anytime, anywhere.

"Kroger's new drone delivery pilot is part of the evolution of our rapidly growing and innovative e-commerce business – which includes pickup, delivery, and ship and reached more than $10 billion in sales in 2020," said Kroger's Jody Kalmbach, group vice president of product experience. "The pilot reinforces the importance of flexibility and immediacy to customers, powered by modern, cost-effective, and efficient last-mile solutions. We're excited to test drone delivery and gain insights that will inform expansion plans as well as future customer solutions."

How the Drone Grocery Delivery Pilot Works
The pilot will offer customers unparalleled flexibility as Drone Express technology allows package delivery to the location of a customer's smartphone not only to a street address, simply meaning a customer will be able to order delivery of picnic supplies to a park, sunscreen to the beach, or condiments to a backyard cookout, for instance.

Kroger is designing bundled product offerings ideal for meeting customer needs within the current weight limits for drone delivery, which is about five pounds. As an illustration, Kroger will offer a baby care bundle with wipes and formula, a child wellness bundle with over-the-counter medications and fluids, and a S'mores bundle with graham crackers, marshmallows, and chocolate. Using Kroger.com/DroneDelivery, customers can place orders and have eligible orders delivered within as little as 15 minutes.

"Autonomous drones have unlimited potential to improve everyday life, and our technology opens the way to safe, secure, environmentally friendly deliveries for Kroger customers," said Beth Flippo, Chief Technology Officer, TELEGRID. "The possibilities for customers are endless – we can enable Kroger customers to send chicken soup to a sick friend or get fast delivery of olive oil if they run out while cooking dinner."

Drone Express will commence test flights this week near the Kroger Marketplace in Centerville, Ohio (1095 South Main Street). The flights will be managed by licensed Drone Express pilots from an on-site trailer with additional off-site monitoring. Customer deliveries are scheduled to begin later this spring, and a second pilot is scheduled to launch this summer at a Ralphs store in California.

"The launch of the pilot in Centerville is the culmination of months of meticulous research and development by Kroger and Drone Express to better serve and meet the needs of our customers," said Ethan Grob, Kroger's director of last mile strategy and product. "We look forward to progressing from test flights to customer deliveries this spring, introducing one more way for our customers to experience Kroger."

"Kroger and Drone Express made a great choice in piloting this program in Centerville – a community with a robust business network focused on progress and stability near the birthplace of aviation," said Centerville Mayor Brooks Compton. "Families here have the power to transform grocery delivery around the nation and the globe. We look forward to placing our first order."

Media Assets
To download Kroger and Drone Express photography, please visit here.

About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: to Feed the Human Spirit™. We are nearly half a million associates who serve over nine million customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

About TELEGRID
Headquartered in New Jersey, TELEGRID Technologies, Inc. is a woman-owned small business founded in 1984 with a focus on providing cutting-edge technologies, including communications and networking equipment and systems for U.S. military and government agencies. In 2018, the company founded Drone Express to integrate its state-of-the-art, military-grade wireless mesh network with advanced drone technologies. Drone Express, which uses only American-made parts in its drones, currently has operations in California, New Jersey, and Ohio. TELEGRID is currently one of only 10 companies pre-approved by the FAA to achieve airworthiness consideration for its DE-2020 unmanned aircraft.

A division of TELEGRID Technologies, Drone Express is a logistics firm that works with companies to strategically integrate drone delivery into supply chains and service offerings. The company recently established a facility in the southwest Ohio community of Monroe as a hub for manufacturing, testing, and piloting of autonomous drones for commercial package delivery.

Drone Express grew out TELEGRID's extensive experience with the U. S. Department of Defense, which gave the company the proven success necessary to work with the Federal Aviation Administration (FAA) on the certification process. TELEGRID is currently one of only 10 companies pre-approved by the FAA to achieve airworthiness consideration for its DE-2020 unmanned aircraft. The company is also exploring ways to expand the range of drone deliveries Beyond Visual Line of Sight (BVLOS) as part of the FAA's BEYOND program through lead participant the Choctaw Nation of Oklahoma.  For more information, visit www.telegrid.com. For more information on Drone Express and its commercial drone delivery offering, visit https://droneexpress.ai/.

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SOURCE The Kroger Co.

FAQ

What is the new drone delivery pilot by Kroger and Drone Express?

Kroger and Drone Express have launched a pilot program for grocery delivery via autonomous drones, allowing customers to receive orders at their location.

What are the expected benefits of the drone delivery pilot for Kroger?

The pilot aims to enhance Kroger's e-commerce capabilities by offering fast and flexible delivery options to customers.

Where will the initial drone delivery pilot take place?

The initial test flights for the drone delivery pilot will be conducted in Centerville, Ohio.

When will customer deliveries start through the drone delivery pilot?

Customer deliveries are expected to begin later this spring.

What is the significance of Kroger's e-commerce sales in 2020?

Kroger reported over $10 billion in e-commerce sales in 2020, highlighting the rapid growth of its online grocery business.