Barcelona, August 23, 2024.- The use of drones as a mode of transport continues its slow but sure path, especially in American companies such as Walmart:
Walmart and its partner, DroneUp, are scaling back its delivery operations in three states to concentrate efforts on the Dallas-Fort Worth area. According to Axios, DroneUp is closing 18 Walmart delivery hubs in Phoenix, Salt Lake City, and Tampa, impacting 70 employees—about 17% of DroneUp’s workforce in these regions. These closures follow the 2022 launch of what was described as the first large-scale drone delivery operation in the U.S. Despite providing valuable insights into consumer demand, the smaller-scale operations were deemed unsustainable.
DroneUp, partially owned by Walmart, plans to focus on automation and the development of drones with higher payload capacity and longer range. “We’re really focusing on automation and a drone with higher payload capacity and longer range,” said DroneUp CEO Tom Walker. “Now it’s time to focus on that scalable model.” Earlier this year, DroneUp introduced a proprietary autonomous drone ecosystem, featuring an automated, climate-controlled storage locker for package handling and battery recharging. The company is also rolling out a more advanced drone that travels at 60 mph, has a 30-mile range, and can carry packages up to 10 pounds.
However, drones are simply too expensive to operate, with Walker revealing that it currently costs the company about $30 to deliver a package by drone. The goal is to reduce this cost to below $7, making drone delivery competitive with ground-based methods while offering faster service. “If we achieve the delivery cost point that we’re targeting, then it will no longer be something that people want; it’ll be something that they demand,” Walker stated.
Walmart has big plans for Dallas-Fort Worth, announcing earlier this year that it will expand drone delivery to 1.8 million residents, covering approximately 75% of the population. In addition to DroneUp, Walmart has partnered with Google-backed Wing and Zipline for drone delivery services in the region.
This information, and photo, has been published by Supply Chain 247
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