Uber Backs Zipline, Targets 1M Drone Deliveries
Uber Backs Zipline, Targets 1M Drone Deliveries
The News
Uber is investing in drone company Zipline and adding its aircraft to Uber Eats, with a stated goal of 1 million drone deliveries a day by the end of 2029.
The companies announced the tie-up Monday. Zipline drones will make their first Uber Eats deliveries by the end of this year, starting in Zipline's existing markets — Dallas-Fort Worth, where the company has flown since 2025 — before expanding to what the two firms call "dozens of U.S. cities."
Uber did not disclose how much it put into Zipline. Uber says the drones can drop an order on a customer's front lawn in a "matter of minutes"; TechCrunch reports the company expects orders filled in five to ten minutes.
Timeline
Zipline begins operations in Rwanda, delivering medical supplies to remote areas. The San Francisco-based company also flies in Ghana, Japan, Nigeria, Cote d'Ivoire and Kenya, and has made 2 million deliveries to date, according to The Verge.
Zipline starts drone operations in Texas. The same year, President Donald Trump signs an order that led the FAA to propose new rules expanding drone delivery operations.
Uber announces a drone delivery partnership with Israeli startup Flytrex, which also came with a small investment.
Zipline closes an extended $800 million Series H round, valuing it at $7.6 billion, TechCrunch reported.
DoorDash launches its own drone program, DoorDash Air, after winning FAA approval.
Uber and Zipline announce the investment and Uber Eats partnership.
Reactions
Uber CEO Dara Khosrowshahi framed the deal as a growth engine, telling the Wall Street Journal: "Truly quick commerce is proving to be an even bigger market than the original food market was. We think this can be an enormous tailwind for the next leg of growth for Eats."
Zipline co-founder Keller Cliffton said in a statement: "Every great transportation revolution has changed where people live, how businesses operate, and how economies grow. Together with Uber, we're taking the next step toward building a world where getting what you need is as fast and effortless as sending a text, no matter where you are."
TechCrunch notes the deal follows Uber's standard playbook — buy into as many outside operators as possible rather than build its own. The company has committed more than $10 billion to dozens of autonomous vehicle providers after selling off its in-house efforts, Uber Elevate and its Advanced Technologies Group.
What's Next
First Uber Eats drone deliveries are due before the end of 2026, followed by expansion beyond Dallas-Fort Worth.
The size of Uber's investment remains undisclosed.
The partner-everyone strategy has limits. Uber recently clashed with Waymo, its highest-profile partner, and the two are expected to split when their contracts expire in 2028, TechCrunch reports. The two companies are also on opposite sides of a fight over autonomous vehicle regulation.
More
The race for ground-level delivery moved the same day. Serve Robotics announced a partnership with Grubhub and expanded its DoorDash deal into two more U.S. cities, Reuters and Bloomberg reported — moves Bloomberg described as following the robot-delivery firm's falling out with former investor Uber.
The money at stake: one analysis cited by The Verge puts the delivery drone market at $7.7 billion by 2031. Easing federal rules are what opened the lane, letting operators fly farther for less.
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