Walmart Inc. has announced the expansion of the company’s drone delivery program in six states, including Texas.
David Guggina, senior vice president of innovation and automation for Walmart U.S., said the company’s DroneUp delivery program will be expanded to 34 sites by the end of the year. In addition to Texas, those sites are located in Arizona, Arkansas, Florida, Utah, and Virginia. He said the program, which was tested by delivering hundreds of packages from some hubs over the last few months, could now possibly reach 4 million homes in the United States.
“This provides us the ability to deliver over 1 million packages by drone in a year,” Guggina said in a press release.
Using the drone program, Walmart customers in the eligible states will be able to order 10 pounds or less of over-the-counter medication, toiletries, groceries, and other items between 8 a.m. and 8 p.m. for 30-minute delivery. The fee for the service is $3.99.
According to Guggina, a team of certified pilots trained to follow FAA guidelines will operate a DroneUp hub in participating stores. He said while Walmart officials thought consumers would use the service for emergency items, the company found customers in initial hub drone delivery areas used the service primarily for convenience, much like Walmart’s PickUp service. He said the top-selling item in current hubs is Hamburger Helper.
To maximize the drone program, Guggina said Walmart would also offer businesses and municipalities local to the hubs the use of the technology as well. Walmart anticipates the revenue received from those partnerships can offset delivery costs for customers. He said businesses and other entities could benefit from the drones in areas of insurance, emergency response, and real estate.
“For example, a local construction agency can work with DroneUp to monitor on-site job programs through aerial drone photography,” he said. He additionally stated that “DroneUp has been a reliable partner as we’ve tested this solution, and their capabilities will enable our business to scale with speed while maintaining a high caliber of safety and quality.”
The drone expansion from Walmart follows its other delivery methods in recent years, including Express delivery, which allows customers to receive their items in two hours. Walmart also offers InHome, wherein delivery employees place perishable items inside customers’ refrigerators.
Walmart’s introduction of drone-based delivery comes on the heels of other drone delivery services recently offered in the Dallas area. In April, quadcopter company Wing began a drone delivery service to select customers in the Dallas-Fort Worth area. According to The Dallas Express, consumers can use the service to receive items from Texas Health, Easyvet, Blue Bell Creameries, Walgreens, and more.
Walmart’s drone expansion could help the company rebound from a disappointing first quarter. In a profit statement released in May, the company reported a decrease in profit from the same time last year and below estimates from analysts. The company reported $2.05 billion or $0.74 per share compared to $2.73 billion or $0.97 per share for the same quarter in 2021. Analysts estimated the company to earn $1.48 per share by the end of the first quarter of 2022.
Doug McMillon, president and CEO of Walmart, said in a press release that inflation woes caused unexpected bottom-line results.
“We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future,” he said.