STOCK TITAN

Walmart Invests in DroneUp, the Nationwide On-Demand Drone Delivery Provider

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Walmart's CEO, John Furner, announced significant advancements in last-mile delivery solutions, highlighting a partnership with DroneUp for rapid drone delivery of COVID-19 self-collection kits. The initiative, showing promising results with hundreds of deliveries completed, aims to enhance customer convenience. Walmart's extensive infrastructure, with 4,700 stores and over 100,000 items near 90% of the U.S. population, positions it uniquely for scalable drone operations. Upcoming trials will commence in Bentonville, Arkansas, further solidifying Walmart's commitment to innovative delivery strategies.

Positive
  • Investment in DroneUp enhances last-mile delivery capabilities.
  • Successful completion of hundreds of drone deliveries demonstrates operational viability.
  • Walmart's extensive store network supports rapid drone operations.
Negative
  • None.

CEO and President of Walmart’s U.S. business, John Furner, released the following memo early Thursday morning:

In our ongoing effort to get customers the items they want, and fast, we know it will take a well-coordinated network of delivery solutions that span the streets, sidewalks and skies. Some of these solutions are still emerging but they’re already showing encouraging results.

Last year, we partnered with DroneUp, a nationwide drone services provider, to launch trial deliveries of at-home COVID-19 self-collection kits. The trial demonstrated we could offer customers delivery in minutes versus hours. Now, after safely completing hundreds of drone deliveries from Walmart stores, we’re making an investment in DroneUp to continue our work towards developing a scalable last mile delivery solution.

DroneUp operates an on-demand drone delivery network that matches their database of more than 10,000 Federal Aviation Administration (FAA) certified pilots to missions nationwide. Since partnering with DroneUp last year, we’ve valued their technological expertise, world-class operations and experienced management team – and their commitment to helping the FAA ensure the highest levels of safety with every delivery. As a well-respected industry innovator, DroneUp was the first operator to use the FAA 107.39 waiver, an operation that allows for delivery flights to be conducted over people and moving vehicles. DroneUp operates commercially throughout the U.S. and is an authorized government drone services provider for 11 U.S. states serving public sector organizations.

Walmart already has a significant part of the infrastructure in place – 4,700 stores stocked with more than 100,000 of the most purchased items, located within 10 miles of 90% of the U.S. population. This makes us uniquely positioned to execute drone deliveries, which is why our investment in DroneUp won’t just apply to the skies but also the ground. In the coming months we’ll be beginning our first operation at a store in Bentonville, Arkansas.

In April, we announced a similar investment in Cruise, an all-electric autonomous vehicle company. Through these commitments, we’re learning how these technologies can get customers the items they need.

Conducting drone deliveries at scale is within reach. 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. Because when it comes to the future of drone delivery, we know the sky’s the limit.

FAQ

What is Walmart's recent investment related to drone delivery?

Walmart has invested in DroneUp to enhance its last-mile delivery solutions, focusing on drone deliveries.

How many stores does Walmart have that support drone deliveries?

Walmart has 4,700 stores strategically located to support drone deliveries across the U.S.

What is the purpose of the partnership between Walmart and DroneUp?

The partnership aims to develop scalable drone delivery solutions, improving speed and efficiency in deliveries.

Where will Walmart begin its first drone delivery operations?

Walmart will launch its first drone delivery operations at a store in Bentonville, Arkansas.

What technology does DroneUp use for its deliveries?

DroneUp operates an on-demand drone delivery network, utilizing FAA-certified pilots for missions nationwide.

Walmart Inc.

NYSE:WMT

WMT Rankings

WMT Latest News

WMT Stock Data

725.61B
4.31B
46.38%
35.56%
0.39%
Discount Stores
Retail-variety Stores
Link
United States of America
BENTONVILLE