Uber Invests in Zipline to Expand Drone Delivery Services

CoinWorld reports:

Uber is integrating more automated delivery services into Uber Eats. On August 17, the company announced an investment in drone delivery company Zipline and established a partnership aimed at achieving an average of 1 million deliveries per day via Zipline drones by the end of 2029.

First Batch of Orders to Launch This Year
The two companies stated that Zipline drones will begin accepting orders from the Uber Eats platform by the end of this year, with the initial services launching in markets where Zipline is already operational, and plans to expand to dozens of cities across the United States. The specific amount of this investment has not been disclosed.

Uber expects that Zipline drones can complete order deliveries within 5 to 10 minutes. Uber CEO Dara Khosrowshahi noted that faster instant retail delivery is becoming a larger market than traditional food delivery, which could bring a new wave of growth for Uber Eats.

Uber Continues to Expand Its Partnership Network
This collaboration continues Uber's recent platform strategy of integrating as many autonomous and automated service providers into its network as possible, rather than rebuilding a complete in-house system. Previously, Uber sold its aerial mobility project Uber Elevate and its autonomous driving business Uber Autonomous Technologies Group.

Following this, investment and collaboration have become important ways for Uber to advance new technologies. Reports indicate that Uber has invested over $10 billion in dozens of autonomous driving-related companies to maintain its position in new mobility and delivery services.

Competition in Drone Delivery Heats Up
However, this multi-party collaboration model is not without friction. Recently, Uber has encountered disagreements with its autonomous driving partner Waymo, and both parties are expected to end their collaboration after their contract expires in 2028. The two companies currently have differing positions on autonomous driving regulatory issues.

Previously, Uber tested drone delivery during the Elevate business phase and announced a partnership with Israeli startup Flytrex at the end of last year, along with a small investment. The introduction of Zipline indicates that Uber is further intensifying its commitment to the drone delivery sector.

Additional Information: Zipline is headquartered in San Francisco and recently completed a Series H funding round after expansion, raising $800 million and increasing its valuation to $7.6 billion.

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