Walmart Expands Drone Deliveries To Four Million Households - InvestingChannel

Walmart Expands Drone Deliveries To Four Million Households

%Walmart ($WMT) is expanding its %DroneDeliveries across six U.S. states, making it possible for more customers to get a box of diapers or baking ingredients delivered in 30 minutes or less.

Through an expanded deal with drone operator %DroneUp Walmart said it will be able to reach four million households in Arizona, Arkansas, Florida, Texas, Utah and Virginia with drone deliveries.

The deliveries by air will be fulfilled from a total of 37 stores — with 34 of the outlets run by DroneUp.

Walmart already offers drone deliveries from a few stores near its headquarters in northwest Arkansas and in North Carolina.

Walmart has been testing how small, unmanned aircraft could drive e-commerce growth and help it beat rival %Amazon ($AMZN) on delivery speed.

Two years ago, Walmart signed deals with three delivery drone operators— Flytrex, Zipline and DroneUp — and began pilot projects to deliver groceries, household essentials, and COVID-19 test kits to consumers.

Drone deliveries are an extension of Walmart’s strategy to use its huge physical footprint as a competitive advantage. About 90% of Americans live within 10 miles of one of Walmart’s more than 4,700 stores across the U.S. Through those stores, Walmart has offered a growing number of fast online options, including curbside pick-up.

Customers who live within range of a Walmart drone delivery site can order thousands of items between 8 a.m. and 8 p.m. Each drone delivery comes with a $3.99 U.S. service fee. Customers can order items totaling 10 pounds or less.

Each order is packaged and loaded at the store and flown remotely by a certified pilot to the customer’s yard or driveway. A cable on the drone slowly lowers the package down to ground level.

Orders must be placed on DroneUp’s website or through the websites of the two other drone operators. Walmart said it plans to eventually add drone order-placing capabilities to its own website and app.

Frequent items delivered by drones during Walmart’s trial period included batteries, trash bags, laundry detergent and various snacks, the company said.

Year to date, Walmart’s stock is down 15% at $122.60 U.S. a share.

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