Uber and drone delivery company Zipline announced a partnership on Aug. 17 to scale autonomous drone delivery across the US, with Uber also making a strategic investment in Zipline.
The two companies are targeting one million Uber Eats drone deliveries per day by the end of 2029. The first deliveries will launch in Dallas and Houston before the end of this year, then expand into dozens of additional US cities.
With Zipline's drones, Uber expects to fulfill orders in five to ten minutes, down from its typical 30-minute delivery window. Uber CEO Dara Khosrowshahi described customer demand for rapid delivery as "insatiable."
"Truly quick commerce is proving to be an even bigger market than the original food market was."
Dara Khosrowshahi, Uber
Zipline got its start a decade ago delivering blood and medical supplies in Rwanda. It now operates on four continents, serves more than 5K hospitals and health facilities, and has flown more than 135M autonomous miles.
The company currently completes roughly one delivery every 20 seconds. Its US commercial partners include Walmart, Chipotle, Wendy's, and Panera.
One notable detail in the Zipline integration: this is the first time Zipline will be fully embedded inside a retailer's app. Until now, customers had to download Zipline's own app to access drone delivery.
The scale challenge
Zipline completed roughly one million commercial deliveries over the past year. Hitting that same number in a single day requires a transformation in operational scale. The company is already doubling its aircraft manufacturing capabilities to prepare.
Khosrowshahi acknowledged that drones and human couriers will likely run side by side for several years while Uber debugs the routing system that decides which orders go airborne. Uber declined to disclose the financial terms of its investment.
This deal is Uber's largest drone commitment yet. It previously ran drone deliveries with Israeli startup Flytrex in Dallas and has an agreement with Ireland's Manna in Europe. Uber says it's now working with more than 30 autonomous vehicle partners across its business.
Competition in drone delivery is accelerating. DoorDash recently received air carrier certification from the FAA, clearing the way for its own in-house drone program.
Amazon has its own drone division serving select US markets, and Google-owned Wing is live in nearly 20 US markets, with plans to reach more than 270 Walmart stores by 2027.
For Uber, the drone push is part of a broader hybrid network strategy that also includes sidewalk robots and autonomous vehicles, all aimed at matching each delivery with the fastest available mode.