Uber has entered a partnership and investment deal with drone delivery startup Zipline, aiming to scale autonomous deliveries through the Uber Eats platform.
Key facts
- •Uber aims to facilitate one million drone deliveries per day by the end of 2029.
- •Initial drone deliveries on Uber Eats are scheduled to begin by the end of 2024.
- •Uber has invested over $10 billion into various autonomous vehicle and technology providers.
- •Zipline recently reached a valuation of $7.6 billion following an $800 million funding round.
- •Uber and Waymo are expected to end their partnership when current contracts expire in 2028.
Uber is partnering with and investing in drone delivery company Zipline to integrate autonomous aerial deliveries into the Uber Eats platform. The companies announced plans to begin initial deliveries in Zipline’s existing markets by the end of this year, with a long-term goal of reaching one million drone deliveries per day by the end of 2029.
By the numbers
Expansion and Operational Strategy
The partnership aims to expand drone delivery services into dozens of U.S. cities. Uber anticipates that Zipline’s drone technology will enable order fulfillment within five to ten minutes. Uber CEO Dara Khosrowshahi stated that the company views this initiative as a potential catalyst for the next phase of growth for the Eats platform, noting that quick commerce is emerging as a significant market.
Uber’s Autonomous Vehicle Approach
Uber’s strategy involves partnering with multiple autonomous vehicle and drone providers rather than developing its own proprietary technology. This approach follows the company's divestment of its internal programs, such as Uber Elevate and the Uber Autonomous Technologies Group. To date, Uber has committed more than $10 billion to investments in dozens of autonomous vehicle providers. However, the strategy faces challenges, including a cooling relationship with partner Waymo, with whom Uber is expected to part ways when their contracts expire in 2028.
Zipline Funding and Vision
San Francisco-based Zipline recently concluded an extended Series H funding round, raising $800 million and reaching a valuation of $7.6 billion. Zipline co-founder Keller Cliffton described the collaboration as a step toward making the delivery of goods as efficient as sending a text message. The specific financial terms of Uber’s investment in Zipline were not disclosed.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch.
