Walmart stops DroneUp deliveries in three states

Walmart is discontinuing drone deliveries with partner DroneUp in Phoenix (Arizona), Salt Lake City (Utah) and Tampa (Florida) because the services in these cities were not sustainable, according to AxiosThis comes after Walmart and DroneUp announced in 2022 that they would launch drone deliveries in those states as part of a broader expansion.

Currently, it costs about $30 to deliver a package by drone, but DroneUp aims to reduce the cost to under $7, said DroneUp CEO Tom Walker. Axios.

DroneUp will close 18 Walmart delivery centers in the cities and 17 percent of DroneUp’s workforce (70 employees) will lose their jobs. Axios Reports. After the cuts, there will be only 15 Walmart locations – “11 in Dallas, 3 near Walmart’s headquarters in Bentonville, Arkansas, and one in Virginia Beach,” according to Axios — where you can use DroneUp’s delivery program.

“We are pleased with the momentum and positive customer response we have experienced around drone delivery,” Walmart spokeswoman Lindsey Coulter said in a statement to The edge“This service will continue to evolve as we learn more about customer preferences and drone capabilities. Our drone delivery program is still a pilot and by focusing our efforts on Dallas-Fort Worth, we can learn more about the potential to scale this innovative delivery option for Walmart’s customers.” DroneUp did not immediately respond to a request for comment.

In addition to DroneUp, Walmart partners with Alphabet’s Wing and Zipline for drone deliveries in the Dallas-Fort Worth metropolitan area and with Flytrex for deliveries in Fayetteville, North Carolina.

Update, 16 August: Added statement from Walmart.