The world’s largest retailer will start offering drone service at 100 stores across Charlotte, N.C.; Tampa and Orlando, Fla.; Atlanta; and Houston. (Walmart via X)
Walmart Inc. is adding drone delivery in five new cities in a bid to expand online sales and get goods to shoppers faster.
The world’s largest retailer will start offering drone service at 100 stores across Charlotte, N.C.; Tampa and Orlando, Fla.; Atlanta; and Houston, building on existing operations in northwest Arkansas and Dallas-Fort Worth. Walmart said it’s the first retailer to scale drone delivery in five states.
Fast deliveries have been among the key areas of growth for Walmart as consumers prioritize convenience and become more willing to pay up for it. Drone shipments can take just minutes to arrive. The company says frequently ordered items by drone include fresh fruit, eggs, pet food and ice cream.
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Quicker delivery windows offer more flexibility for shoppers, said David Guggina, chief e-commerce officer of Walmart U.S.
“You’re telling me this item’s gonna be here in 45 minutes,” he said. “Now I can plan my life around that really definite window of time.”
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Bentonville, Ark.-based Walmart expects its online business to reach profitability this year — a milestone following billions of dollars in investments to compete against Amazon.com Inc. and other digital powerhouses. E-commerce has been expensive for retailers due to high costs for freight, labor and fuel. Walmart has been focused on trimming costs by automating warehouses and batching more orders together. At the same time, the retailer is also expanding its offerings to include pharmacy and late-night delivery.
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Walmart and Amazon rank Nos. 1 and 12, respectively, on the Transport Topics Top 100 list of the largest private carriers in North America.
With the drone expansion, Walmart is deepening its partnership with Alphabet Inc.’s Wing business. The companies teamed up in 2023 to offer drone deliveries in two Dallas-area stores. Wing has approvals from the Federal Aviation Administration to fly its drones beyond visual line of sight up to six miles from the stores. Walmart also works with Zipline, another drone service, in Texas and Arkansas.
