Uber Gets Back Into Drone Delivery With Flytrex Investment
Tests Will Begin in Uber Eats Pilot Markets by the End of the Year
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Uber Technologies Inc. will trial food deliveries by drone with Flytrex Inc., marking the rideshare giant’s return to experiments with logistics.
Tests with Flytrex’s autonomous drone delivery system will begin in Uber Eats pilot markets by the end of the year, according to a statement Sept. 18. Uber is also making a financial investment into Flytrex “to accelerate the development and launch of the technology,” the companies said. Uber declined to disclose the size of the investment and said it wasn’t material.
While pizza delivery drones are moving closer to reality in the U.S., there are limitations when it comes to scale. The Federal Aviation Administration tightly regulates airspace, with Flytrex one of only a handful of companies cleared to operate drones that fly beyond the operator’s visual range. Amazon.com Inc., which has FAA approval, has suffered setbacks with its own program after drones crashed in the rain.
Amazon.com Inc. ranks No. 1on theTransport Topics Top 100 list of the largest logistics companiesin North America, No. 15 on theTT100 list of the largest private carriersand No. 1 on theTop 50 Global Freight list.
Guess what our average delivery time is…? The Flytrex drone has an average delivery time of 4 minutes and 10 seconds. That same trip by car in Granbury Texas could take up to 40 minutes, depending on traffic! 🚀💨 — Flytrex (@flytrexcom)
Flytrex, founded in 2013, started as a supplier to drone manufacturers but pivoted to delivery, and now counts Walmart Inc. and Uber rival DoorDash Inc. among its customers.
Walmart ranks No. 1 on the TT100 private carriers list.
Uber previously tested McDonald’s delivery by drone in San Diego in 2019 via its in-house aerial arm, Uber Elevate. But the program was hit by regulatory delays and Uber sold the division when it wound down expensive projects during the pandemic.
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The deal marks a return of the now-profitable Uber to more ambitious bets, including autonomous ride-hailing, sidewalk delivery robots and helicopters. But Uber’s strategy relies on strategic partnerships and investments, rather than developing the technology and hardware in-house.
DoorDash, Uber’s competitor and the largest food delivery app by U.S. market share, has offered drone delivery with Flytrex in parts of the Dallas-Fort Worth area since June. DoorDash also works with Alphabet Inc.’s Wing to test and provide drone delivery in some parts of Charlotte, N.C., Southwest Virginia and Australia.
