Walmart expanding drone delivery to larger US metros
by June 11, 2025 9:03 pm 1,042 views
(from left) Kieran Shanahan, chief operating officer at Walmart U.S., held a panel discussion during the retailer’s recent shareholder week for the media. Panelist were Alexandra Blake, director of drone technology at Walmart, Greg Cathey senior vice president of transformation and innovation at Walmart, and Adam Woodruff, CEO of Wing.
Roughly six months after Walmart ended a partnership with drone tech firm DroneUp, the retail giant is expanding its business with Wing, with a focus on adding drone service beyond the Dallas/Fort Worth metro and Northwest Arkansas.
Walmart and Wing will expand drone delivery service in Atlanta, Charlotte, Houston, Orlando and Tampa. Greg Cathey, senior vice president of Walmart U.S. transformation and innovation, said Walmart is expanding drone delivery because customers are asking for it. He said the five expansion cities were chosen after Walmart assessed customer demand for faster deliveries.
“We know our customers want it,” Cathey said. “They’re looking for this, and we want to give them a way to be able to receive goods the way they want. The second thing that we’re looking at is, where do we have infrastructure? In all of these cities, we have a very robust core footprint. We’ve got seasoned operators, and so that infrastructure helps us as we think about scaling with a partner like Wing. The third is that we look for optimal weather and geographical conditions, so these areas make it really easy for us to operate the drones. And then finally, we’re looking for states that are willing to work with us on this drone technology.”
Kieran Shanahan, chief operating officer for Walmart U.S., said drone delivery is about giving customers another convenient option. He said customers want drone delivery because of the convenience it provides them.
Walmart has in recent years had several stops and starts with drone technology and has tested delivery with Wing, DroneUp and Zipline. Walmart in January sold its stake in DroneUp, ending the partnership established in 2021. Adam Woodworth, CEO of Wing, said safety is paramount. He said a drone company is a licensed carrier with the Federal Aviation Administration, so they are essentially a miniature airline with all the associated regulations.
The retailer continues to work with Wing and Zipline. The Wing partnership launched in Dallas/Fort Worth has been a success, according to Walmart, which said it has made 150,000 successful deliveries since 2021. Shanahan said customers from all walks of life have used the delivery option.
Walmart said the most frequently ordered items include bananas, lemons and limes, Great Value eggs, ice cream, and pet food. The new drone service will launch at 100 stores, building on the existing operations in Northwest Arkansas and Dallas/Fort Worth.
Drone delivery in the new markets covered by Wing will be free for Walmart+ members for a limited time, but shoppers must use the Wing app to place an order. For non-Walmart+ members, the delivery fee is $19.99 on top of the cost of the purchase. Until recently, the drone delivery charge was $12.99.
In comparison, express delivery from a local store costs $10 with a guaranteed delivery within one hour, and shoppers do not need to use a separate app to place the order. Talk Business & Politics asked Walmart if there are plans to integrate drone delivery into the Walmart app. Cathey said it is being tested now in the Dallas/Fort Worth market, and there are plans to integrate.
“As we look ahead, drone delivery will remain a key part of our commitment to redefining retail,” he said. “We’re pushing the boundaries of convenience to better serve our customers, making shopping faster and easier than ever before. This expansion of drone service marks a significant milestone in that journey.”
Woodworth said the expansion is “real delivery at scale.” He said the newer units are able to deliver items weighing 5 pounds or less. The battery pack allows for trips of 12 miles round-trip at a cruising speed of 65 miles per hour. Over half of the 150,000 items sold in a Walmart store are weight-eligible for drone delivery.
Market watchers are skeptical of drone delivery success for retailers given that land delivery from stores is already fast and cheaper. McKinsey reported in 2024 that single package delivery via drone costs $13.50, which is more than a delivery made by an electric or gas-powered car. Free drone delivery for Walmart+ members comes at a loss given the known cost of the service. It is unknown if the retailer will continue the free service or if it is a way to entice consumers to sign up for a Walmart+ membership.
Walmart lowered the cost of its subscription membership in recent months. The cost of the annual membership is $98 a year, but for households receiving government assistance, like Medicaid, the premium is $49 annually.
Walmart Chief Financial Officer John David Rainey has said part of the reason Walmart has been able to become profitable with its U.S. e-commerce business is because more consumers are opting for delivery, and customers are willing to pay the premium for express delivery.
Retail consultant Scott Benedict, a former merchant at Walmart and Sam’s Club, said Walmart’s drone strategy looks to be part of the retailer’s “and” agenda. He said it’s not an “or” offering.
“Walmart may not ever make drone delivery profitable, but if they convert consumers in these large competitive markets into Walmart+ members who end up shopping for more things over time, then it does not have to be profitable, because the retailer would see a higher lifetime value in that customer,” Benedict said.
He said it’s not enough for Walmart to be known only for low prices in this competitive economy. Benedict said drone delivery at scale could be a convenience differentiator for Walmart to be known as a time-saver and one-stop solution provider.