Walmart Bets Big on Drones, Planning at Least 570 Delivery Sites

Walmart is going bigger on drone delivery. A new expansion with drone operator Zipline lifts the retailer's planned total to at least 570 sites — a nearly ninefold jump, according to Retail Dive. The ramp-up will spread rapid air delivery to customers nationwide over the next several years.

The retailer kicked off the year with 66 active drone delivery locations and has been adding steadily since an expansion with Wing in January. That Wing deal alone will take Walmart's drone coverage past 270 stores by 2027. Customers in range can order tens of thousands of items through the Walmart app or website and get them in as little as 30 minutes.

Demand is already showing up. Walmart hit its 1 millionth drone delivery in May, with a little over 40% of those trips landing in the first quarter, and the tally has doubled since. CEO John Furner told analysts on a Q2 earnings call that speed keeps shoppers coming back: customers who use fast delivery shop more often, engage more deeply and are likelier to join Walmart+.

Walmart's edge is its real estate. Roughly 90% of Americans live within 10 miles of a Walmart store, giving the company a ready-made network to build on. Greg Cathey, senior vice president of e-commerce fulfillment transformation, said in a statement that Walmart's stores sit close to the communities it serves, and Zipline lets it push that fast option to more of the country.

The pressure from above is real. Amazon plans to have drone delivery capabilities in nearly 500 cities by the end of this year, keeping Walmart in a tight race. Zipline announced $1.5 billion in fresh funding the same day as the Walmart news, money it will put toward expanding its U.S. manufacturing facilities and hiring.