Walmart and Zipline add 300 drone delivery sites as Zipline raises $1.5 billion
Walmart and Zipline have agreed to expand their drone delivery partnership to 300 new U.S. sites, growing from 21 active locations today. Zipline raised $1.5 billion at a $21.5 billion valuation to fund U.S. manufacturing expansion and nationwide network buildout, with Walmart and Uber as key partners.
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Key takeaways
Walmart and Zipline will launch 300 additional drone delivery sites nationwide under a new multi-year agreement, up from 21 active sites today.
Zipline raised $1.5 billion at a $21.5 billion post-money valuation to expand U.S. manufacturing and support nationwide network growth.
Zipline delivered orders in a median 19 minutes in October versus more than 30 minutes for traditional delivery, with over one million deliveries in Dallas-Fort Worth this year.
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Walmart is expanding its drone delivery partnership with Zipline. The two companies reached a new multi-year agreement to add 300 drone delivery sites across the United States, TechCrunch reported, a large step up from the 21 active sites they run together today. In its own announcement, Zipline said Walmart and Zipline are now working together to launch 300 additional sites as part of a national agreement with potential to grow further.
The two companies have worked together on drone delivery since 2021. The announcements did not name markets or a rollout schedule for the new sites.
A $1.5 billion raise to build the network
On the same day, Zipline said it raised $1.5 billion at a $21.5 billion post-money valuation. Paradigm, WCM Investment Management and Layer Global led the round, with participation from Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, J.P. Morgan, ARK Invest and Salesforce Ventures.
Zipline said it will use the capital to expand its U.S. manufacturing facilities and ramp hiring as it builds a nationwide drone delivery network. TechStartups noted that the company raised more than $600 million at a reported $7.6 billion valuation in January, so its valuation has nearly tripled in about ten months.
With partners like Uber and Walmart and a repeatable model for entering new markets, Zipline is well positioned to make drone delivery a mainstream part of everyday life. — Anton Levy, Founder and Managing Partner, Layer Global
What the numbers say for retailers and restaurants
Zipline shared operating figures alongside the raise. In October, the median Zipline order was delivered 19 minutes after checkout, compared with more than 30 minutes for traditional delivery. The company said it made more than one million deliveries in the Dallas-Fort Worth metroplex alone this year.
For a group of established restaurant partners, Zipline said its share of their delivery revenue grew from 10.8% in March to 34.9% in October. Those restaurants saw a 26% increase in delivery gross merchandise value, with 80% of the increase coming from Zipline orders.
The home delivery service runs on Zipline's Platform 2 drones, which carry up to eight pounds to customers within a 10-mile radius, according to TechCrunch. Its larger Platform 1 drones handle long-range deliveries for enterprise, business and government customers, covering 120 miles round trip.
Uber and the path to scale
Walmart is not the only large partner. Uber, which also invested in this round, is targeting one million deliveries a day with Zipline by 2029. TechStartups reported that the Uber partnership, announced in August, brings Zipline drone deliveries into Uber Eats, starting in existing Zipline markets before extending to dozens of U.S. cities.
It's no wonder that some of the largest merchants in the world are partnering with Zipline to use their delivery network. — Matt Huang, Co-Founder and Managing Partner, Paradigm
What retail operators can watch
For retailers and restaurant groups weighing drone delivery, the next signals are where Walmart's 300 additional sites open first, how quickly Zipline's expanded U.S. manufacturing comes online, and whether the 19-minute median delivery time holds as the network grows beyond its current markets.
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