Walmart and DroneUp are scaling back their on-demand drone delivery services, closing 18 delivery centers in Phoenix, Salt Lake City, and Tampa. This move comes as the partners concentrate their efforts on expanding their drone delivery operations in Dallas.
DroneUp's decision to shut down these centers was confirmed by the company, which also acknowledged that layoffs are anticipated as a result. "Layoffs are an unfortunate part of a business that is literally defining its own industry," a DroneUp spokesperson told IoT World Today.
Despite the closures, DroneUp will continue its delivery services at 15 Walmart locations, including 11 in Dallas, three in Walmart’s hometown of Bentonville, Arkansas, and one in Virginia Beach. The company is now focusing on its scalable last-mile delivery platform, Ecosystem. This platform features the Destination Box (DBX), a secure, climate-controlled locker designed for package pickup and drop-offs.
Ecosystem also includes cloud-based software to automate much of the flight operations, with a single operator overseeing multiple drones traveling beyond visual line of sight (BVLOS). The platform's new drone model can reach speeds of up to 60 mph, travel up to 30 miles, and carry cargo in a weatherproof fuselage.
"The lessons we have learned in the last several years have informed a strategy to reshape the last mile of delivery with DroneUp’s Ecosystem platform," the company stated, emphasizing its goal to provide an economically feasible and scalable solution for both sellers and buyers.
Walmart, on its part, is expanding its drone delivery operations in the Dallas-Fort Worth Metroplex. The retailer plans to extend its service to over 30 towns and municipalities in collaboration with drone-delivery providers Wing and Zipline. Walmart's expansion aims to cover 75% of the area’s population, a significant increase from its previous coverage.
“Our drone-delivery program is still a pilot and by focusing our efforts in Dallas-Fort Worth, we can learn more about the potential to scale this innovative delivery option for Walmart’s customers,” said a Walmart spokesperson. Since launching the program, Walmart has completed over 50,000 drone deliveries, integrating the service into customers' daily lives.
Globally, drone delivery is gaining momentum, with Amazon in the UK selected by the Civil Aviation Authority to participate in a trial BVLOS drone-delivery program later this year. The trial aims to collect safety data, including how drones detect and avoid other aircraft, and improve visibility to other airspace users and air traffic controllers.
