Drones Modern Flying News

Walmart, DroneUp End Delivery Partnership

Former partners had recently downsized a drone delivery network that in 2022 completed more than 6,000 deliveries out of 36 hubs in seven states.

Jack Daleo

Tuesday, January 07, 2025 at 11:48 AM ET

Verified

Edited By: tccjeremy

DroneUp and Walmart have ended their partnership after about four years of collaboration. [Courtesy: DroneUp]

Key Takeaways:

Walmart has ended its contract and investment with DroneUp, its primary drone delivery partner, following DroneUp's earlier downsizing of its network.
DroneUp, which provided the infrastructure for drone delivery, has struggled with high operational costs, reporting approximately $30 per package delivery.
Walmart intends to continue its drone delivery services, focusing its efforts in Dallas-Fort Worth with new partners such as Zipline and Wing, who offer more comprehensive autonomous systems and favorable FAA authorizations.
This separation poses a significant challenge for DroneUp to improve its unit economics and compete in the drone delivery market without its largest client.

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Walmart and partner DroneUp boast one of the largest drone delivery services in the U.S. But after downsizing their network by more than half in August, the companies are going their separate ways.

First reported by Axios and confirmed to FLYING by a Walmart spokesperson, the world’s largest retailer has ended its contract with the drone delivery firm. In addition, Walmart, which as recently as June made an undisclosed strategic investment in the company, is no longer a DroneUp investor.

Jack Daleo

Jack is a staff writer covering advanced air mobility, including everything from drones to unmanned aircraft systems to space travel—and a whole lot more. He spent close to two years reporting on drone delivery for FreightWaves, covering the biggest news and developments in the space and connecting with industry executives and experts. Jack is also a basketball aficionado, a frequent traveler and a lover of all things logistics.