Walmart & Wing Expand Drone Delivery to 5 More US Cities

Wing and Walmart Expand Drone Delivery Services

Wing, the drone delivery service owned by Alphabet, is broadening its commercial reach through a collaboration with Walmart. This partnership aims to enhance delivery capabilities and convenience for customers.

New Cities and Expansion Details

The companies jointly announced plans on Thursday to extend drone delivery services to over 100 Walmart stores across five additional cities. These include Atlanta, Charlotte, Houston, Orlando, and Tampa. Furthermore, Walmart will integrate Wing drone deliveries into its existing Dallas-Fort Worth market.

Walmart's Commitment to Innovation

This expansion demonstrates Walmart’s increasing belief in the potential of drone delivery. Greg Cathey, Senior Vice President of U.S. Transformation and Innovation at Walmart, emphasized that drone delivery will continue to be a vital component of the company’s dedication to reshaping the retail experience.

“Our goal is to redefine convenience, providing customers with faster and simpler shopping options,” Cathey stated in a blog post published Thursday.

Wing's Transition to Commercial Operations

The current expansion represents a significant milestone for Wing, transitioning it from a project originating within Alphabet X to a fully operational commercial venture. A partnership initiated in 2023 saw Wing launch a pilot program with Walmart, testing on-demand drone delivery at two stores in the Dallas metropolitan area, initially serving approximately 60,000 households.

This pilot program has since expanded to encompass 18 Walmart Supercenters within the Dallas-Fort Worth region.

Significant Operational Growth

Thursday’s announcement signifies a nearly five-fold increase in Wing’s operational scale with Walmart.

Scaling the Business

“We have moved beyond the pilot and trial stages and are now focused on scaling this business,” Wing CEO Adam Woodworth explained to TechCrunch in a recent interview. “Our strategy has always been to excel in a focused area. This expansion represents a substantial opportunity to do just that – it’s a larger undertaking than any we’ve attempted before.”

Lessons from Dallas-Fort Worth

Woodworth highlighted that the pilot program in Dallas-Fort Worth, and its successful scaling, played a crucial role in shaping Wing’s drone delivery strategy within the retail sector.

“We determined how expansion would function and appear in DFW, and are now applying that model to additional markets,” he added.

Profitability and Cost Management

Woodworth refrained from disclosing whether Wing is currently profitable or projecting a timeline for profitability. However, he affirmed the company’s focus on scaling deliveries while maintaining cost control. Wing’s core concept revolves around building a business centered on small, lightweight, automated, and cost-effective aircraft – drones.

Fixed operational expenses are associated with these physical assets, including flight operations and personnel training. The primary challenge for Wing lies in increasing the number of drones and flights without a proportional increase in staffing.

Cost Deflation Through Scale

“Increased operational presence and flight frequency allow for cost distribution. This expansion is a significant step in that direction,” he stated, adding that Wing aims to maintain stable resource levels as its scale continues to grow.

Expanding into Restaurant Delivery

Wing is also extending its reach into the restaurant food delivery sector through a partnership with DoorDash. The two companies initially collaborated in 2022 to launch drone deliveries in Australia, and have since expanded operations to Dallas-Fort Worth and, most recently, Charlotte.