Walmart is Expanding its Delivery Program Across Six States, to Cover 4 Million Households

Sophie Webster, Tech Times 24 May 2022, 09:05 pm

Since 2020, Walmart has been testing a drone delivery program across several parts of the United States. Now, the e-commerce giant says it is ready to expand that offering.

Walmart to Expand Delivery Program

By the end of 2022, the retailer plans to add 34 new sites to its existing DroneUp network. With the expansion, around four million households in Florida, Texas, Arizona, Arkansas, Utah, and Virginia will have access to drone deliveries from the company.

For a delivery fee of only $4, you can order up to 10 pounds of groceries and household items and have them delivered to your doorstep, according to CNBC.

If you use the service, Walmart says that your package will arrive in only 30 minutes.

By the end of 2022, Walmart estimates that it will have the capacity to deliver 1 million packages by air every year. It is an impressive milestone, to be sure, but it does not mean that the program is profitable just yet.

The retailer notes that it will offer drone services to businesses and local governments. As an example, Walmart suggests that drones could help construct companies with one-site aerial photography.

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Not only will the added revenue help offset the overall cost of delivery, but it also serves the entire drone industry by gathering more flight data as they work together to expand the drone operations in a safe and regulated way.

Walmart won't be the only retail company operating a drone delivery service in Texas, Alphabet's Wing division recently expanded its delivery program to include the Dallas-Fort Worth area.

Walmart Testing the Drone

Walmart has been testing how the small and unmanned aircraft could change the game for retail, drive e-commerce growth and turn the stores into a way to outmatch Amazon on speed, according to Engadget.

In 2020, it struck deals with three operators, namely Flytrex, Zipline and DroneUp. The company began pilot projects to deliver groceries, household essentials and at-home COVID-19 test kits to customers.

The new type of delivery is considered an extension of Walmart's strategy to use its massive physical footprint as a competitive edge.

Around 90% of Americans live within 10 miles of one of Walmart's more than 4,700 stores. Through those stores, Walmart has offered a growing list of fast online options, including curbside pickup, Express Delivery, which drops items at doorsteps in two hours or less, and InHome, which delivers directly to customers' fridges.

Customers who live within the range of a Walmart drone-delivery site can order any of thousands of items between 8 a.m. and 8 p.m.

Each drone delivery comes with a $3.99 fee. Customers can order groceries totaling up to 10 pounds, according to TechCrunch.

Each order is picked, packaged, and loaded at the stores and is flown remotely by a certified pilot to the customer's yard or driveway. A cable on the drone then lowers the package to your doorstep.

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