Article by:
Fortune
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Retail giant Walmart plans to expand trials of its drone delivery program to 4 million households across six U.S. states, building on its lead over rival Amazon.
For a small fee of $3.99, residents in 34 different sites will be able to order by the end of this year up to 10 pounds worth of goods delivered right to their yard with the help of a cable that gently lowers the package down from the hovering machine.
“Customers will be able to order from tens of thousands of eligible items, such as Tylenol, diapers, and hot dog buns, for delivery by air in as little as 30 minutes,” it said in a statement on Tuesday. “Simply put, if it fits safely, it flies.”
The trial, in conjunction with industry partner DroneUp, expands the service into new areas in Arizona (Phoenix), Florida (Tampa and Orlando), Texas (Dallas), Utah (Salt Lake City), and Virginia (Richmond) and would enable over 1 million packages to arrive by drone in a year.
A limited droner delivery service was already available in Arkansas.
Walmart first partnered with DroneUp in September 2020 to deliver self-administered COVID testing kits and said it was surprised by the reception its trial service received when it was first expanded last November.
"While we initially thought customers would use the service for emergency items, we’re finding they use it for its sheer convenience, like a quick fix for a weeknight meal," it said on Tuesday. "Case in point: The top-selling item at one of our current hubs is Hamburger Helper."
Walmart said DroneUp would also seek to find other applications where it can earn money, including offering local businesses and municipalities aerial drone services in areas like insurance, emergency response, and real estate.
“Not only will the added revenue help offset the cost of delivery, but it also serves the entire drone industry by gathering more flight data as we work together to expand drone operations in a safe and regulated way,“ Walmart said.
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