Key facts
- Uber is partnering with drone delivery company Zipline.
- The goal is to achieve one million daily deliveries via Zipline drones by the end of 2029.
- Zipline drones will start making deliveries on Uber Eats by the end of this year.
- The companies did not disclose the investment amount.
- Uber is pursuing a strategy of onboarding multiple autonomous vehicle and delivery partners.
Uber is expanding its Uber Eats delivery network by partnering with drone delivery company Zipline, with the ambitious goal of facilitating one million drone deliveries per day by the end of 2029. The initial phase will see Zipline drones making deliveries on the Uber Eats platform by the close of this year, starting in Zipline's current operational areas and with plans to expand into numerous U.S. cities.
While the specific investment amount was not disclosed, this move aligns with Uber's broader strategy of integrating various autonomous technologies onto its platform. This approach mirrors its strategy for robotaxis and other autonomous vehicle services, aiming to onboard multiple partners rather than developing in-house solutions, a strategy that has seen Uber invest over $10 billion in autonomous vehicle providers.
Uber has previously explored drone delivery, including a partnership with Flytrex announced late last year. The company believes Zipline's drones can achieve delivery times of five to ten minutes, a speed Uber CEO Dara Khosrowshahi described as crucial for the future growth of Uber Eats, calling quick commerce a larger market than original food delivery.
Zipline, based in San Francisco, recently secured $800 million in its Series H funding round, valuing the company at $7.6 billion. Zipline co-founder Keller Cliffton stated that the partnership aims to make obtaining goods as fast and effortless as sending a text message.