Walmart Ramps Up Tests For Drone Delivery, Which States Will Have Them?
In an apparent effort to gain an edge on Amazon, retail giant Walmart (WMT) announced on Tuesday that it would expand its drone-delivery program to six states.
David Guggina, senior vice president of innovation and automation for Walmart U.S., wrote a blog post that outlines the details of the expansion of DroneUp's service.
By the end of 2022, the retailer plans to expand its DroneUp service to 34 sites that will reach four million households. The service will be available in an additional six states: Arizona, Arkansas, Florida, Texas, Utah, and Virginia. The service was already available in Arkansas and North Carolina.
DroneUp will be available to consumers from the hours of 8 a.m. to 8 p.m. in their respective time zones. Customers will only be able to place orders that add up to 10 pounds for this delivery.
Some items will be available for order in as little time as 30 minutes. Each delivery will include a $3.99 fee.
"Simply put, if it fits safely it flies," read a Walmart press release.
Walmart also said that those in compliance with Federal Aviation Administration guidelines can pilot the drones. Right now, consumers have to use DroneUp's website to place orders. Walmart plans to have an order option available on its own website soon.
The Arkansas-based company said that using drones increased the speed with which customers can get deliveries by flying to their houses. The drones lower the delivery via cable onto customers' lawns.
According to CNBC, around 90% of consumers in the U.S. live within 10 miles of 4,700 Walmart stores.
This program appears to be currently geared towards those in suburban or rural areas. It is unclear how this would work for someone living in an apartment complex or city. Yards are not conveniently available for most people in those areas.
Still, Walmart expects to make 1 million deliveries in a year using the service.
However, the company says that the service is not just available for retail purchases. One example the retailer gave was a construction site that needs aerial drone photography to monitor on-site progress. Walmart also said that it could use drones for local businesses' and municipalities' needs. This includes insurance and emergency response situations.
As of Tuesday at 1:13 p.m. ET, shares of Walmart were trading at $123.75, up by $1.15, or 0.93%.
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