Walmart ending DroneUp deliveries in 3 states
Walmart is ceasing drone deliveries made with partner DroneUp in Phoenix, Ariz., Salt Lake City, Utah and Tampa, Fla., per a TheVerge report.
An Axios report that said the services in those cities weren’t sustainable.
The cost to use a drone to deliver a package, is about $30 but DroneUp wants to lower the cost to uner $7, DroneUp CEO Tom Walker told Axios.
DroneUp will be closing 18 Walmart delivery hubs in the cities, and 17% of DroneUp’s workforce, which is about 70 staffers will lose their jobs, per the Axios report.
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The DroneUp delivery program will be used at 15 Walmart locations, 11 in Dallas, 3 near Walmart’s Bentonville, Ark., headquarters and one in Virginia Beach, per the reports.
A Walmart spokesperson provided Drug Store News with a statement which said, "We are excited about the momentum and positive customer response we’ve experienced around drone delivery. This service will continue to evolve as we learn more about customer preferences and drone capabilities. 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."
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Flytrex, which is another Walmart drone delivery partner, provided DSN with a statement from Yariv Bash its CEO and founder: "The drone delivery industry is at a pivotal moment where the focus is shifting from regulatory approvals to achieving true commercial viability. Walmart's decision to halt DroneUp services highlights the need for a robust system that both meets regulatory standards and delivers on the promise of cost-effective and scalable operations. You can't deliver groceries in a Bentley - it's simply too expensive. The key to the industry's future success lies in creating solutions that are more affordable and efficient than existing alternatives."