LAYOFFS INCOMING: Walmart teams up with Wings for high-speed drone deliveries to 60,000 homes in Dallas
08/31/2023 / By Laura Harris
Retail giant Walmart has announced a new partnership with Wing, an on-demand drone delivery provider powered by Google parent company Alphabet, to offer drone delivery services from two of its branches in Dallas to 60,000 customers in the area.
The Walmart Supercenter, located in Frisco, Texas, is set to pioneer the drone delivery service while a second Walmart store is scheduled to join later this year.
To access the service, customers need to download the Wing app and input their home address. Customers living within a six-mile radius of the supported stores can enjoy the convenience of ordering groceries, quick meals, over-the-counter medicines and essential household items. The drones can also deliver delicate items like eggs and frozen treats with its retractable tether mechanism.
Moreover, it transports small packages weighing up to 2.6 pounds with a speed of up to 65 mph and delivery time in less than 30 minutes.
The drones, predominantly automated and remotely monitored, allow operators to manage the system from a remote location without on-site pilots. Thus, the delivery service provides swift and convenient access to different essential goods.
Walmart launched its drone delivery journey in 2020, and since then, it has formed strategic partnerships with drone service providers like DroneUP, Zipline and Flytrex. This collaborative approach has facilitated the expansion of drone operations to 36 Walmart stores across seven states, namely Arizona, Arkansas, Florida, North Carolina, Texas, Utah and Virginia.
Shift in drone delivery services causes job layoffs
As drone technology becomes more prevalent, discussions surrounding the displacement of certain job roles are gaining traction.
For instance, DroneUp, a Virginia-based drone delivery company serving as a key partner for Walmart’s drone delivery services, announced a series of job cuts in May. The company, founded in 2016, specializes in last-mile delivery through its fleet of quadcopter drones that transport items from warehouses directly to the doorsteps. (Related: Layoff saga continues as 12 more companies announce mass employment terminations.)
DroneUp, with a workforce of 418 people, has recently undergone a round of layoffs affecting several departments within the company.
While the specifics of the affected positions have not been disclosed officially, insiders have indicated that roles such as flight engineers, instructors, flight and development service engineers, business analysts, marketing managers and the director of business development were among those impacted by the cuts.
DroneUp CEO Tom Walker addressed concerns stemming from these layoffs, emphasizing that they constitute only a “small percentage of the team.” Walker explained that these measures are part of a strategic shift in the company’s focus, moving away from enterprise services like real estate inspections and aerial data capture and putting greater emphasis on the drone delivery of consumer goods.
Walker expressed optimism about the company’s future, assuring that the growth trajectory of its drone delivery services will lead to a net increase in employment opportunities. He stated that the increased demand for drone delivery services will ultimately result in the company “hiring more people than were laid off.”
At present, DroneUp operates 36 hubs located within Walmart stores, facilitating drone deliveries within a 1.5-mile radius of each store. This localized approach has contributed to the significant adoption of drone delivery services by consumers.
“Following the widespread acceptance of our drone delivery services among consumers, we have made the strategic decision to reshape our business model. This restructuring aligns our company structure with the ongoing expansion and success of our drone delivery and related services from our hubs,” Walker concluded.
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