Autonomous delivery company Zipline has raised $1.5 billion and agreed to significantly expand its partnership with Walmart, bringing its valuation to $21.5 billion.
The new multi-year deal calls for 300 additional drone delivery sites across the United States. The companies currently operate together at 21 locations, following a partnership that began in 2021.
Zipline plans to use the investment to grow its U.S. manufacturing capacity and hire more employees as it builds out a nationwide delivery network. The company's system combines aircraft with launch and landing infrastructure and logistics software.
Founded in 2014, Zipline first used autonomous drones to deliver blood in Rwanda before expanding into other African countries. It began U.S. operations in 2020, initially transporting medical supplies, and has since developed delivery services for food, retail, agricultural and health products in several countries, including Japan.
Its Platform 2 drones serve home deliveries, carrying up to eight pounds over distances of up to 10 miles. Larger Platform 1 aircraft are designed for longer routes, with round trips of up to 120 miles. The company received Federal Aviation Administration Part 135 certification in 2022, enabling long-range commercial drone deliveries.
The expanded agreement and funding could help make autonomous delivery more accessible, while showing how drone networks may become a larger part of everyday logistics.
