At the beginning of this year, Walmart announced that it completed over 6,000 drone deliveries in 2022 through its partnership with three drone delivery companies. The retailer currently operates 36 drone delivery hubs across seven states in the US, including Arizona, Arkansas, Florida, North Carolina, Texas, Utah, and Virginia. These hubs are operated by DroneUp, Flytrex, and Zipline.

The company still has a long way to go until it reaches its annual goal of 1m packages delivered. Nonetheless, Walmart said that it's encouraged by the positive response from customers and looks forward to making more progress in 2023.

Walmart isn't the only company that's looking to incorporate drone delivery into its operations. Companies like Amazon, UPS, and Alphabet are also investing in this technology as they look for smart mobility solutions to improve their last-mile logistics.

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What makes drone delivery a sought-after technology, and how will it help Walmart (and many others) realize business goals?

Walmart drone delivery is a smart mobility solution for many reasons

• Reduced carbon emissions and offsetting

Prioritizing creating sustainable and clean energy solutions in order to future-proof delivery operations is crucial nowadays. In 2020, a significant 45% of consumers began prioritizing sustainable purchases and planned to continue doing so. Google reported that in 2020, there was a 300% increase in search interest for "ethical brands" and a 600% increase in search interest for "ethical online shopping" compared to the previous year. As a result, retailers such as Walmart must be mindful of the sourcing and delivery of their products.

Using drones for last-mile delivery helps to reduce carbon emissions and offset environmental impacts. Not only do drones require no fuel, but their small size and lightweight design also enable them to fly faster than conventional vehicles. This means they have a much shorter journey time and consequently fewer emissions, and they help take cars off busy roads and reduce gridlock.

Moreover, the fact that drones can take off and land vertically means they don’t need to drive or use roads, which cuts down on emissions even further. Additionally, because they don't require roads or parking spaces, they can easily fly in areas where car access is difficult, such as remote villages and rural areas.

Studies have shown that drones can use up to 94% less energy per package compared to other vehicles. Walmart drone delivery is much more energy efficient than passenger cars, as they don’t require any fuel. One of Walmart's partners, Zipline, claims that its delivery system produces up to 97% fewer emissions than gas-powered delivery, plus zero tailpipe emissions.

Some drones can even plant trees and restore natural habitats, which absorb carbon dioxide from the atmosphere, helping offset emissions from other sources. Some companies, like BioCarbon Engineering and Denbra Systems, are working on using drones to plant trees in areas difficult for humans to access, like steep hillsides or remote areas.

• Improved last-mile efficiency and safety

By using drones, retailers can reduce their last-mile delivery time and costs. Drones are able to deliver packages in minutes instead of hours or even days with conventional delivery methods. This makes them ideal for same-day and next-day deliveries. DroneUp, another one of Walmart's drone delivery partners, says it delivers a retail order in 30 minutes or less. Its fastest delivery time so far is 17 minutes from when the order is placed to delivery.

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The fact that drones don't require human drivers also helps keep people safe. Although no one flies the drones, drone delivery companies usually have human operation teams to ensure the safety of the flights. For example, Flytrex, says it has a team of "FAA-certified drone operators overseeing each mission."

Drone delivery also provides more accurate tracking and real-time data on deliveries, thanks to GPS technology and advanced sensors. This helps retailers keep track of their shipments in real time and ensure they arrive on time.

• Improved customer satisfaction

How is drone delivery important for customers too? For one, it can help them receive orders faster and more conveniently. Additionally, drones can be used to deliver food and medical supplies to those living in underdeveloped or disaster-stricken areas, reducing the risks associated with conventional delivery methods. As the technology becomes more mature, drone delivery can greatly improve the customer experience overall.

How Walmart drone delivery has more possibilities than just retail

Walmart is expanding its drone infrastructure which encourages the growth of drone technology and helps various industries utilize smart mobility. According to Walmart, its partner drone delivery company DroneUp will provide local businesses and municipalities with aerial drone solutions in various areas, including insurance, emergency response, and real estate. One of its use cases in construction is using drones to "monitor on-site job progress through aerial drone photography."

Alongside its partnership with Walmart, Zipline is revolutionizing the medical supply chain. The company has partnered with several hospitals in Rwanda to transport important packages, such as blood and vaccines, via drones. TIME reports that since December 2016, over 4000 units of blood products, including red blood cells, platelets, and plasma, have been delivered by the company to 12 hospitals. This has helped to save precious hours, which would have been lost if the products had to travel via a complicated road network.

Apian, a startup invested by Plug and Play, also focuses on healthcare and has partnered with hospitals and healthcare services in the UK. It offers mobility solutions for UK's medical logistics by using drones for on-demand healthcare deliveries. It works with different types of drones for different deliveries. The fixed-wing hybrid VTOL (vertical take-off and landing) drones are used for long-range endurance flights, while the multi-rotor drones are used for shorter flights that are easier to launch.

"Apian's mission is to make people and the planet feel better by using drones to bring on-demand delivery to healthcare," said Alexander Trewby, Co-founder and CEO of Apian. "We do this by building products and platforms that connect the healthcare industry with the drone industry to improve patients’ health outcomes and staff well-being."

"We are very excited to invest in Apian, a moonshot opportunity that could become revolutionary for both the drone and the healthcare space, in both reducing costs and saving lives," said Polina Stavrovski, Ventures Associate at Plug and Play.

Another company, Microdrones, has helped Sinopec, a Chinese gas and oil enterprise, with its pipeline inspection since 2017. Drones are employed to inspect pipeline facilities for any potential damages and to observe any activities that could harm the underground pipelines. These activities include construction work, mining activities, landslides, floods, or any natural disasters.

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Walmart drone delivery has opened up a world of possibilities for other industries to utilize smart mobility. By pushing the boundaries of technology, drone delivery companies like Zipline, DroneUp, and Flytrex are showing us just how powerful this mobility solution can be. As the technology continues to develop, more industries will likely begin to leverage drones as part of their operations – providing smarter solutions for carbon reduction and offsetting and significantly improving efficiency, safety, and customer experience.

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