Uber is investing in, and partnering with, drone delivery company Zipline with the goal of making one million deliveries per day using the startup’s drones by the end of 2029.
Zipline drones will make the first deliveries on the Uber Eats platform by the end of this year, the companies said on Monday. These deliveries will start in Zipline’s existing markets, and the companies want to expand into “dozens of U.S. cities.”
The companies didn’t disclose the investment amount.
Uber has been taking on multiple drone delivery partners as it looks for ways to keep growing Uber Eats. The ride-hail giant is replicating the early business model it’s adopted for robotaxis and other services built around autonomous vehicles, which is to essentially bring as many companies on to its platform as possible.
This approach has helped Uber stay at the forefront of these new technologies despite selling off its own programs like the aerial ride-sharing service, Uber Elevate, and Uber Autonomous Technologies Group, which was working on autonomous vehicles. Investments have been a huge part of the strategy, with Uber committing more than $10 billion to dozens of autonomous vehicle providers.
The strategy is not a panacea, though. Uber recently clashed with one of its highest-profile partners so far, Waymo, and the companies are now expected to walk away from each other when their contracts expire in 2028. Uber and Waymo are also on different sides of a growing fight over autonomous vehicle regulation.
The ride-hail giant had tested the waters of drone delivery when it still had its Elevate division. The company dipped back into the idea late last year when it announced a partnership with Israeli startup Flytrex, which also came with a minor investment.
Uber thinks Zipline’s drones can fulfill orders on Uber Eats within five to ten minutes. “Truly quick commerce is proving to be an even bigger market than the original food market was,” Uber CEO Dara Khosrowshahi told the Wall Street Journal in an interview. “We think this can be an enormous tailwind for the next leg of growth for Eats.”
Zipline, based in San Francisco, recently closed an extended Series H funding round of $800 million, pushing its valuation to $7.6 billion.
“Every great transportation revolution has changed where people live, how businesses operate, and how economies grow,” Zipline co-founder Keller Cliffton said in a statement. “Together with Uber, we’re taking the next step toward building a world where getting what you need is as fast and effortless as sending a text, no matter where you are.”
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