Walmart Expands Drone Deliveries with Wing to Denver and Seattle

Walmart (WMT) stock gained momentum after announcing an expansion of its drone delivery service with Wing, Alphabet’s (GOOGL) aviation unit. The partnership will now bring drone deliveries to the Denver and Seattle metropolitan areas starting next year. This expansion follows successful service in major U.S. cities like Dallas-Fort Worth, Atlanta, Houston, and Orlando, reaching over three million customers.

Heather Rivera, Chief Business Officer at Wing, highlighted the rapid adoption of drone delivery across the country. She noted that the service now caters to nearly 20 major markets, delivering essential items quickly to busy families. Greg Cathey, Senior Vice President of eCommerce Transformation at Walmart, emphasized the convenience of drone delivery for customers needing items promptly.

The expansion aims to cover over 270 Walmart stores nationwide, serving more than 40 million customers. Wing’s drones can carry up to five pounds and deliver items like trail mix, produce, electronics, and medications at speeds up to 60 mph. The partnership began in 2023 with a pilot program in Dallas, which has since grown to 18 Walmart Supercenters in the area.

Walmart has completed over one million drone deliveries through Wing and another drone startup, Zipline. Despite this growth, WMT stock has declined 5% year-to-date. Analysts on TipRanks rate Walmart as a Strong Buy, with a consensus price target of $128.20, suggesting a 22.42% upside potential.