🚁 Walmart Pulls Back on DroneUp Delivery
Walmart is stopping DroneUp drone deliveries in Phoenix, Salt Lake City, and Tampa. The decision comes after services in these areas proved unsustainable, as reported by Axios. The company originally launched drone deliveries in these cities in 2022 as part of a major expansion. The cost to deliver a package by drone is currently around $30, but DroneUp aims to reduce this to under $7, according to CEO Tom Walker.
📉 Hubs Closing, Jobs Lost
DroneUp will close 18 Walmart delivery hubs in the affected cities. This move will lead to a reduction of 17% of DroneUp’s workforce, affecting 70 employees. After these cuts, only 15 Walmart locations will offer drone deliveries. These include 11 in Dallas, 3 near Walmart’s Bentonville headquarters, and one in Virginia Beach.
🏗️ Strategic Focus Shift
DroneUp's CEO, Tom Walker, mentioned the company is entering a "new, strategic phase" focused on streamlining operations in key regions. The company will concentrate on the Dallas metropolitan area, where it plans to roll out its autonomous DBX Ecosystem platform. This shift aims to build a scalable model for drone deliveries.
💼 Walmart’s Continued Drone Ambitions
Despite these changes, Walmart remains committed to drone delivery. Walmart spokesperson Lindsey Coulter emphasized that the company is excited about the positive customer response to drone deliveries. Walmart also partners with other drone companies, including Alphabet’s Wing and Zipline in Dallas-Fort Worth and Flytrex in Fayetteville. This shift is part of Walmart’s ongoing pilot to explore the potential for scaling drone deliveries.
What do you think about Walmart's drone delivery plans?
