Walmart Expands Drone Delivery to Five Cities, Boosts Online Sales

Walmart, the retail giant, is expanding its drone delivery service to five new cities in an effort to accelerate order delivery and bolster its online sales. The company will launch the service in 100 stores across Charlotte, North Carolina; Tampa, Florida; Atlanta, Georgia; Houston, Texas; and Orlando, Florida. This move makes Walmart the first retailer to achieve scaled drone delivery operations across five states.

The rapid delivery service is a critical area for Walmart's business growth, as consumers increasingly value convenience and are willing to pay a premium for it. With drone delivery, items can be delivered in as little as a few minutes. Walmart has identified several frequently delivered items via drone, including fresh fruits, eggs, pet food, and ice cream.

David Guggina, Walmart's Chief E-commerce Officer in the U.S., highlighted the flexibility that faster delivery windows offer to consumers. "If you tell me this item will be delivered within 45 minutes, I can plan my life around that very specific time frame," he said.

Walmart anticipates that its online business will turn a profit this year, marking a significant milestone after investing billions of dollars to compete with e-commerce giants. The high costs associated with shipping, labor, and fuel have traditionally made e-commerce expensive for retailers. Walmart has been focused on reducing these costs through automated warehousing and batch processing of more orders. Concurrently, the company is expanding its service offerings, including prescription drug delivery and late-night delivery services.

Through this expansion of drone delivery, Walmart is deepening its collaboration with Wing, the drone company under Alphabet. The two companies began their partnership in 2023, offering drone delivery services from two stores in the Dallas area. Wing has received approval from the Federal Aviation Administration to operate its drones within a six-mile radius of stores. Additionally, Walmart is partnering with another drone delivery company, Zipline, in Texas and Arkansas.