Uber is integrating more automated delivery services into Uber Eats. On August 17, the company announced an investment in drone delivery firm Zipline and entered into a partnership aimed at achieving one million daily deliveries via Zipline drones by the end of 2029.
Launch the first batch of orders within this year
Both companies stated that Zipline drones will begin fulfilling Uber Eats orders before the end of this year, with initial services launching in markets where Zipline is already operational, followed by plans to expand to dozens of U.S. cities. The specific amount of the investment was not disclosed.
Uber expects Zipline’s drones to deliver orders in 5 to 10 minutes. Uber CEO Dara Khosrowshahi said that faster on-demand retail delivery is becoming a larger market than traditional food delivery, which could drive new growth for Uber Eats.
Uber continues to expand its network of partnerships
This partnership continues Uber’s recent platform strategy of integrating as many autonomous and automation service providers as possible into its network, rather than rebuilding a fully proprietary system. Previously, Uber sold its air mobility project, Uber Elevate, and its autonomous driving business, Uber Autonomous Technologies Group.
After this, investment and collaboration became key strategies for Uber to advance new technologies. The report noted that Uber has invested over $10 billion in dozens of companies related to autonomous driving to maintain its presence in the next-generation mobility and delivery services.
Drone delivery competition intensifies
However, this multi-party collaboration model is not without friction. Uber recently had a disagreement with its autonomous driving partner, Waymo, and both companies are expected to end their partnership after the contract expires in 2028. The two companies also currently hold differing positions on autonomous driving regulations.
Uber previously tested drone delivery during its Elevate business phase and announced a partnership with Israeli startup Flytrex last year, making a small investment. The introduction of Zipline signifies Uber’s further commitment to the drone delivery sector.
Additional information: Zipline is headquartered in San Francisco and recently completed its expanded Series H funding round, raising $800 million and raising its valuation to $7.6 billion.