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CNBC
3 days ago
- Business
- CNBC
Walmart plans to expand drone deliveries to three more states
Walmart is bringing drone deliveries to three more states. On Thursday, the big-box retailer said it plans to launch the speedier delivery option at 100 stores in Atlanta, Charlotte, Houston, Orlando and Tampa within the coming year. With the expansion, Walmart's drone deliveries will be available in a total of five states: Arkansas, Florida, Georgia, North Carolina and Texas. Customers will request a delivery through the app of Wing, the operator who flies the drones through a deal with Walmart. The drone operator will have an up to a six-mile range from stores. Drone deliveries are one of the buzziest examples of Walmart's efforts to compete with rivals like Amazon on convenience along with low price. With more than 4,600 Walmart stores across the U.S., the retailer has used its large footprint to get online orders to customers faster. It has an Express Delivery service that drops purchases at customers' doors in as fast as 30 minutes, along with InHome, a subscription-based service, that puts items directly into people's fridges. The company began same-day prescription deliveries last fall and has expanded the service across the country. "The number one piece of feedback that we get from our customers are, 'When are you expanding?'" said Greg Cathey, senior vice president of Walmart U.S. transformation and innovation, referring to drone delivery. Cathey said shoppers using the drone service typically order urgent items, such as hamburger buns for a cookout, eggs to make brownies or Tylenol or cold medicine needed when sick. Drone deliveries take 30 minutes or less, the company said. So far, some of the most frequently delivered items include eggs, ice cream, pet food and fresh fruit, including bananas, lemons and eggs, Walmart added. Walmart stores have an assortment of over 150,000 items in a location. Over 50% of those can be delivered by drone, Cathey said. Yet the rollout of speedy deliveries across the U.S. has come with stops and starts. Three years ago, Walmart announced a plan to expand drone deliveries so it would be able to reach 4 million households across six states fulfilled from 37 stores in parts of Arizona, Arkansas, Florida, Texas, Utah and Virginia. At the time, the company's leaders said the retailer would be able to deliver over 1 million packages by drone in a year by using those sites. The rollout never stuck. Walmart's drone delivery count so far is modest. The company did not share the specific count, but said it has racked up a total of more than 150,000 drone deliveries since 2021. Chief competitor Amazon's expansion of drone deliveries has been slow-going, too. The e-commerce giant set a goal to deliver 500 million packages by drone per year by the end of the decade through its service, Prime Air. So far, it has tested the deliveries in College Station, Texas, and Tolleson, Arizona, but it temporarily suspended service earlier this year after an abnormality with the drone's altitude sensor that required a software fix. Walmart has tested drone deliveries in Northwest Arkansas, near its hometown of Bentonville, and scaled them to reach most of the population in the Dallas-Forth Worth area. Several drone operators, including Zipline, Flytrex, DroneUp and Wing, have powered Walmart's deliveries, but the retailer has not provided the financial terms of the deals or the amount of money it has made from sales delivered by drones. Walmart said it currently has 21 live sites in Arkansas and Texas, which are operated by Wing and Zipline. Its contract with DroneUp ended last year. Kieran Shanahan, chief operating officer of Walmart U.S., said the company wants to offer "flexibility and convenience" with drones, along with speedier deliveries by van. "We see it as part of a broader ecosystem of things," he said. "And who knows what five years, 10 years time will bring as new technologies and capabilities unlock?" If customers order in the Wing app, deliveries are free. Cathey said Walmart is testing the addition of a drone delivery option within its app in the Dallas area. As part of the test, deliveries cost $19.99 or are free for members of Walmart+, the company's subscription service.
Yahoo
16-04-2025
- Business
- Yahoo
Walmart Made Another Big Announcement That Has People Talking
Grocery delivery has evolved from a pandemic-era necessity into a must-have service, with retailers racing to offer faster and more efficient options. Walmart has been exploring innovative delivery methods to streamline how customers receive everyday essentials. Now, Walmart is bringing its delivery partnership with Zipline to Mesquite, Texas, with plans to expand across the Dallas-Fort Worth metro area and never been a better time for food delivery. What began as a necessity during the pandemic has turned into an everyday convenience that many shoppers now can't imagine life without. Retailers and restaurants have continued to expand their options to meet growing demand, allowing customers to get what they need in record time. Last year, Walmart announced plans to make delivery more efficient through InHome Delivery, a service that brings groceries straight to your kitchen. In the same news release, the retailer also mentioned plans for drone delivery, which was still in development at the time. After years of trial flights, Walmart has officially launched aerial delivery service in Texas—and the retail giant doesn't plan to stop there. Walmart has partnered with Zipline, a San Francisco-based company specializing in drone deliveries for health care supplies, restaurants, and groceries. Walmart is joining Zipline's other food-focused partners, which already include Jet's Pizza, Panera, and Sweetgreen. The company uses unmanned aerial vehicles called Platform 2 Zips, or P2 Zips, to bring groceries to eligible homes within a fixed zone. P2 Zips have a 10-mile service radius and can cruise up to 70 miles per hour, meaning your goods can likely arrive faster by drone than they would by traditional methods. Zipline first launched Walmart service in 2021 in Pea Ridge, Arkansas, a community about ten miles north of Walmart's headquarters in Bentonville, Arkansas. With sights set on growth, Zipline has started service in Mesquite, Texas, and soon plans to expand its reach across the Dallas-Fort Worth metro area, bringing service to millions of Walmart customers. According to its website, Zipline also plans to open up shop in the Seattle-Tacoma area in the future, but no official dates have been announced regarding this expansion. Getting your groceries delivered by drone is as easy as ordering regular delivery. Those within the service area can schedule and receive their order in as little as 30 minutes. But before you try to get your entire weekly grocery list delivered, it's important to note that the drones can only carry about eight pounds, meaning many items may not be eligible due to size or weight. These speedy deliveries are ideal for last-minute items. (Think: You ran out of milk and planned to make chocolate chip muffins for breakfast, you forgot an essential dinner ingredient, or need over-the-counter cold medicines and chicken noodle soup.) So, how does it work? All you have to do is add eligible items to your virtual Walmart shopping cart, confirm the drop-off area, and place the order. It's important to note that the drone may not be able to deliver directly to your doorstep. While P2 Zips have the accuracy to land on a space as small as a patio table, with consideration to safety and potential obstacles, you may be asked to select an open space such as your front or back yard, or driveway. When your goods arrive, the drone itself will not land. Instead, it will hover in the air, around 300 feet, and extend a tethered carrier portal to carefully place your items in the drop-off location. According to the Zipline Fact Sheet, Zips are operated by trained personnel who are qualified to fly in a range of weather, such as 'rain, wind, thunderstorms, cold, and other conditions that would normally slow down automotive transport.' So even if the weather outside is frightful, you will still be able to get your movie snacks. And, some good news for Walmart+ members: For a limited time, you can enjoy free drone delivery. Non-members, on the other hand, will have to pay a fee of $19.99 per order. Be sure to keep an eye on the sky, as you never know when delivery drones might land in your neighborhood. Read the original article on ALLRECIPES
