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Walmart ends DroneUp deliveries in three states


Walmart ends DroneUp deliveries in three states

According to a report by TheVerge, Walmart is stopping drone deliveries with partner DroneUp in Phoenix, Arizona, Salt Lake City, Utah, and Tampa, Florida.

An Axios report said services in these cities were unsustainable.

The cost of delivering a package by drone is about $30, but DroneUp wants to bring the cost down to under $7, DroneUp CEO Tom Walker told Axios.

DroneUp will close 18 Walmart delivery centers in the cities and 17 percent of DroneUp’s workforce, or about 70 employees, will lose their jobs, the Axios report said.

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The DroneUp delivery program is reportedly being used at 15 Walmart locations, including 11 in Dallas, three near Walmart headquarters in Bentonville, Arkansas, and one in Virginia Beach.

A Walmart spokesman said Drugstore news In a statement, it said: “We are excited about the momentum and positive customer response we have experienced around drone delivery. This service will continue to evolve as we learn more about customer preferences and drone capabilities. Our drone delivery program is still a pilot and by focusing our efforts on Dallas-Fort Worth, we can learn more about the potential to scale this innovative delivery option for Walmart customers.”

(Read more: Walmart touts latest technological innovations and integrations)

Flytrex, another Walmart partner for drone delivery, introduced DSN Yariv Bash, CEO and founder of the company, commented: “The drone delivery industry is at a pivotal moment where the focus is shifting from regulatory approvals to achieving true commercial viability. Walmart’s decision to discontinue DroneUp services underscores the need for a robust system that both meets regulatory standards and delivers on the promise of cost-effective and scalable operations. You can’t deliver groceries in a Bentley – it’s just too expensive. The key to the industry’s future success is developing solutions that are more affordable and efficient than existing alternatives.”

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