Dive Brief:
- Silicon Valley startup Zipline has raised $1.5 billion, which the company plans to use to expand its U.S. drone manufacturing facilities and scale up hiring, it said in a press release Thursday.
- The expansion plans will assist Zipline’s buildout of its nationwide drone delivery network. The company already has a manufacturing facility located in San Francisco, according to its website.
- Zipline did not release further details on its growth strategy and the startup did not respond to requests for further information.
Dive Insight:
The funding announcement fell on the same day Zipline revealed it signed a multi-year agreement expanding its partnership with retail giant Walmart. The deal will add 300 Zipline drone delivery sites with the potential to add more locations.
Zipline has worked with Walmart since 2021, the retail company said in its own press release. Walmart’s expansion with Zipline is the latest step in Walmart’s ongoing drone delivery efforts, which has resulted in more than 2 million deliveries to date.
Zipline’s home delivery drone was designed in two parts, which allows it to operate quietly by keeping the device about 330 feet above the ground, according to Walmart’s press release. The drone also makes deliveries with a pod that contains the order and descends on a tether.
“Walmart’s stores put us close to the communities we serve,” Greg Cathey, senior vice president, eCommerce Fulfillment Transformation at Walmart, said in a statement. “With Zipline, we can build on that proximity and bring this fast delivery option to even more customers across the country.”
The Walmart deal follows another major agreement Zipline inked with Uber in August. The Uber partnership is targeting 1 million drone deliveries per day by the end of 2029, according to the transportation and delivery platform entity.
Additionally, Uber participated in Zipline’s latest funding, which brings the startup’s value to $21.5 billion. The funding round was led by Paradigm, WCM Investment Management and Layer Global. Other investors include Valor Equity Partners, Fidelity Management and Research Co., Tiger Global, J.P. Morgan, Ark Invest and Salesforce Ventures.
