The world’s largest retailer has announced that it is making its drone delivery service available to four million US households following the success of trials over the last year.
Developed in conjunction with a company called DroneUp, the service offers the delivery of food and other items via remote-controlled drones in as little as 30 minutes. Packages are lowered to the ground using a cable (see below).
Walmart customers across six states – Arizona, Arkansas, Florida, Texas, Utah and Virginia – will be able to order from tens of thousands of eligible items. They will be charged $3.99 per delivery, with a weight limit of up to 10lb.
The DroneUp delivery network will be expanded to 34 sites by the end of the year, making it the country’s first large-scale drone delivery programme.
Walmart is in a race to develop drone deliveries with other major e-commerce players, including Amazon. It is betting that its advantage in physical stores – more than 4,700, with more than nine in 10 Americans living within 10 miles of an outlet – will give it a competitive edge.
Some observers have argued that drone delivery could represent a more energy and cost-efficient method of home delivery compared to road vehicles.
NAM Implications:
- The key is Walmart actually pressing ahead with a drone delivery programme…
- …of sufficient scale to optimise potential opportunities.
- A pointer for others…
