Uber is partnering with and investing in drone-delivery company Zipline to launch Uber Eats drone service in Dallas and Houston this year, with the companies aiming to reach 1 million aerial deliveries per day by the end of 2029.
By yourNEWS Media Newsroom
Uber is making its largest commitment yet to drone delivery, partnering with Zipline to bring food and grocery orders to customers by air in as little as five to 10 minutes.
The companies announced Aug. 17 that Zipline drones will begin fulfilling Uber Eats orders in Dallas and Houston by the end of this year, beginning in markets where Zipline already has operations.
From there, Uber and Zipline plan to expand the service to “dozens of U.S. cities” and are setting an ambitious long-term target: 1 million Uber Eats deliveries per day by drone before the end of 2029.
“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 making an investment in Zipline, although the companies did not disclose the amount.
The partnership represents a significant expansion of Uber’s efforts to incorporate autonomous delivery technology into its platform without building the aircraft itself.
Uber experimented with drone delivery as early as 2019 through Uber Elevate, its internal aviation division. The company sold that operation the following year as it sought to reduce costs during the sharp decline in ridership brought on by the COVID-19 pandemic.
Uber has since returned to aerial delivery through partnerships rather than attempting to develop an entire drone ecosystem internally.
The company already offers some drone deliveries in Dallas through Israeli startup Flytrex and has reached an agreement with Irish drone company Manna for operations in Europe.
Uber Eats has taken a similar approach on the ground, experimenting with autonomous delivery robots through partnerships with Serve Robotics and Coco Robotics.
The strategy closely resembles the model Uber is using in the rapidly developing robotaxi market.
Instead of relying exclusively on technology created inside the company, Uber has assembled relationships with multiple autonomous vehicle developers and transportation companies, positioning its platform as a distribution network for their technology.
That approach allows Uber to participate in emerging forms of transportation and delivery even after selling its former in-house technology programs, including Uber Elevate and the Uber Advanced Technologies Group.
Investment has become another major part of that strategy.
Uber has committed more than $10 billion to autonomous vehicle companies and related partners, reflecting the company’s willingness to fund technologies that could eventually change how both passengers and goods move through its platform.
The Zipline agreement takes that partnership model deeper into the delivery business.
If Uber and Zipline achieve their stated 2029 goal, drones would handle 1 million Uber Eats orders every day, transforming a technology that remains relatively limited today into a significant component of Uber’s delivery network.
The principal attraction is speed.
Uber expects Zipline aircraft to complete deliveries within five to 10 minutes, substantially reducing the time associated with traditional vehicle-based food and grocery delivery for eligible orders and service areas.
Drone delivery also represents one potential answer to what logistics companies often describe as the costly and congested “last mile” — the final stage of transporting an order from a store, restaurant or distribution point to a customer.
Uber is entering an increasingly competitive field.
DoorDash has established partnerships with several drone operators and said in July that it had obtained air carrier certification from the Federal Aviation Administration, overcoming an important regulatory obstacle as it develops its own drone-delivery program.
Wonder, the parent company of Grubhub, is also working with Zipline and plans to launch drone deliveries in Texas next year.
Large retailers are pursuing the same technology.
Walmart has built relationships with multiple drone operators, including Zipline, Flytrex and Alphabet-owned Wing, as it works to expand aerial delivery of retail purchases.
Amazon has taken a different approach, designing its own drones and operating its delivery flights internally rather than relying primarily on outside aviation partners.
Those competing models are creating a broader race among technology companies, restaurants, delivery platforms and retailers to determine whether autonomous aircraft can become a practical part of everyday commerce.
For Uber, the Zipline deal marks the clearest indication yet that it expects drone delivery to move beyond small-scale trials.
The company has experimented with drones before, but the 1 million-deliveries-per-day goal is its first publicly stated long-term volume target for the technology.
Dallas and Houston will serve as the initial proving grounds under the new partnership before the companies pursue expansion into dozens of additional U.S. markets.
If the rollout proceeds as planned, Uber customers in participating areas could eventually use the same Uber Eats app they already use for conventional delivery while the final leg of eligible orders is completed by a Zipline drone.
The broader objective is to make aerial delivery a routine option rather than a novelty, with Uber supplying the consumer platform and order volume while Zipline provides the aircraft and delivery technology.
By setting a target of 1 million daily drone deliveries by the end of 2029, Uber is betting that autonomous air delivery can become a meaningful part of the food and grocery business within the next several years.
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