Zipline raises US$1.5 billion as Walmart agrees to add 300 drone sites
The funding values the drone delivery company at US$21.5 billion and will support manufacturing expansion and hiring in the United States.
Zipline announced a US$1.5 billion funding round valuing it at US$21.5 billion, alongside a multi-year agreement with Walmart to add 300 US drone delivery sites. Bloomberg reported that the partners already operate 21 sites across Texas and Arkansas.
The round was led by Paradigm, WCM Investment Management and Layer Global. Other investors included Uber, Fidelity, Tiger Global and Salesforce Ventures. Zipline said the proceeds would fund additional staff and expanded US manufacturing as it develops a nationwide delivery network.
Bloomberg reported that Zipline’s factory near San Francisco International Airport has capacity to produce up to 20,000 aircraft annually. The company operates in Texas, Arkansas and Ohio, with an Arizona launch planned, according to The Wall Street Journal.
Zipline said its October median delivery time was 19 minutes from checkout, compared with at least 30 minutes for ground deliveries. Founder and chief executive Keller Cliffton told Bloomberg Television that customer demand had exceeded both companies’ expectations.
Broader deployment still faces regulatory approval requirements and community concerns about noise and safety, Reuters reported. Walmart also partners with Alphabet’s Wing, while Amazon is expanding its drone service to about 500 US locations.
