Uber is investing in and partnering with drone-delivery startup Zipline as it bets on growing demand for ultra-fast air delivery of takeout and groceries.
Zipline drones will begin making deliveries through the Uber Eats platform in Dallas and Houston by the end of this year, the companies announced Monday.
The service will initially launch in markets where Zipline already operates, with the companies ultimately aiming to expand to “dozens of U.S. cities.”
The companies aim to reach 1 million Uber Eats deliveries per day using Zipline drones by the end of 2029.
With Zipline’s drones, Uber expects orders to be delivered within five to 10 minutes.
“Our goal is for millions of people to be able to order lunch, dinner, snacks and more through the Uber Eats app and have them delivered by Zipline in minutes,” the companies said in a statement.
Uber is also investing an undisclosed amount in Zipline.
Uber Expands Drone Delivery Network
The deal marks Uber’s biggest commitment to drone delivery yet. It is also the first time the ride-hailing giant has set a long-term delivery target for the technology.
Uber first tested drone deliveries in 2019 through its aviation division, Uber Elevate, but sold the unit the following year as the company sought to cut costs amid a decline in ridership during the COVID-19 pandemic.
More recently, the company has offered drone deliveries in Dallas through a partnership with Israeli startup Flytrex and has reached an agreement to work with Irish drone operator Manna in Europe.
Uber Eats has also experimented with ground-based delivery robots through partnerships with companies including Serve Robotics and Coco Robotics.
The strategy mirrors Uber’s approach to its robotaxi business, where the company has assembled a growing network of partnerships rather than developing all of the technology in-house.
That model has allowed Uber to stay involved in emerging transportation technologies despite selling off its own programs, including Uber Elevate and the Uber Advanced Technologies Group.
The Race to Take Orders to the Skies
Uber is not alone in betting on drones as competition intensifies across the food, grocery, and retail delivery markets.
Uber Eats rival DoorDash has partnered with several drone operators and said in July that it had received air carrier certification from the Federal Aviation Administration, clearing a major regulatory hurdle for launching its own drone delivery program.
Wonder, the parent company of Grubhub, has also partnered with Zipline and plans to begin drone deliveries in Texas next year.
Major retailers are also building their drone delivery infrastructure, betting on autonomous aviation to solve the highly congested, expensive “last-mile” logistics problem.
Walmart has partnered with several drone companies, including Zipline, Flytrex, and Alphabet-owned Wing, to deliver goods by air. Amazon, meanwhile, designs its own aircraft and operates flights completely in-house.
