Uber Incorporates Zipline Drones into Its Eats Delivery Service

Uber is teaming up with Zipline, a drone delivery company, with the ambition of achieving one million deliveries daily via drones by the end of 2029.

On Monday, the companies announced that Zipline’s drones will start their initial deliveries on the Uber Eats platform before the year concludes. These early deliveries will occur in Zipline’s existing markets, with plans to expand into “multiple U.S. cities.”

The specific amount of Uber’s investment remains undisclosed.

To enhance the Uber Eats segment, Uber has been collaborating with various drone delivery firms. The ride-hailing giant is reevaluating its original business model for robotaxis and other autonomous vehicle services while aiming to incorporate a wide array of companies into its platform.

This approach has enabled Uber to remain at the cutting edge of emerging technologies, despite having exited its own projects like the aerial ride-sharing service, Uber Elevate, and the Uber Autonomous Technologies Group dedicated to self-driving vehicles. Investments play a vital role in this strategy, with Uber committing over $10 billion to a number of autonomous vehicle partners.

Nonetheless, this plan faces its hurdles. Uber recently encountered a dispute with one of its major partners, Waymo, with speculation indicating they may part ways after their contracts conclude in 2028. Furthermore, Uber and Waymo are currently at odds over escalating disagreements related to autonomous vehicle regulations.

Previously, Uber conducted trials for drone delivery within its Elevate division. Late last year, the company revisited this concept by announcing a partnership with Israeli startup Flytrex, which involved a minor investment.

Uber anticipates that Zipline’s drones will be able to deliver orders on the Uber Eats platform in about five to ten minutes. “True quick commerce is emerging as a more significant market than the traditional food market,” stated Uber CEO Dara Khosrowshahi in an interview with the Wall Street Journal. “We see this as a crucial driver for the next growth phase for Eats.”

Zipline, established in San Francisco, has recently completed a significant Series H funding round, securing $800 million and raising its valuation to $7.6 billion.

“Every major transportation revolution has redefined living patterns, transformed business practices, and stimulated economic growth,” remarked Zipline co-founder Keller Cliffton. “By partnering with Uber, we are progressing toward a future where accessing essential items is as quick and easy as sending a text, no matter where you are.”