A proof-of-concept project in Okinawa, Japan involving blood delivery by drone is setting the stage for a new era in drone logistics.

In what was a test project between delivery drone maker Wingcopter, international trade service ITOCHU Corporation, and ANA Holdings (an aviation group primarily known for its airline of the same name), the team conducted blood deliveries by drone in Okinawa, Japan. There, they transported blood between Urasoe and Nago using Wingcopter’s delivery drones in a proof-of-concept (POC) experiment. The test demonstrated the potential for drones to address labor shortages and ensure critical medical supplies reach isolated or disaster-stricken regions.

Related read: Why this Asian airline is betting big on drones

A milestone in medical drone logistics

Though we’ve seen plenty of instances of drones transporting blood in the past (e.g. UPS uses Matternet drones to fly blood samples in the U.S., and Zipline has long been delivering blood to hospitals primarily in developing countries in Africa), this test has its own merits. That’s largely given the unique geography of Okinawa.

With Okinawa’s 48 inhabited islands posing logistical challenges for traditional transportation, drones offer a faster, more flexible alternative. Besides that, Okinawa stands out for its heat. Located in the southernmost part of Japan, Okinawa is known for its high temperatures in the summer — posing an additional challenge for drones to keep blood cool.

Drones transported both red blood cell fluid and whole blood. Both types of blood are likely to be used in disasters and emergencies and require strict temperature control of 2 to 6 degrees Celsius. In this trial, Wingcopter drones transported blood along a 53-kilometer route in just 32 minutes, maintaining that necessary constant temperature of 2 to 6 degrees Celsius to ensure the blood’s quality.

Experts, including Dr. Hiroshi Fujita, Director of Transfusion Medicine at Tokyo Metropolitan Bokutoh Hospital, confirmed the blood’s integrity, stating it was comparable to samples transported by ground vehicles.

“The results of this verification therefore show that drones may be useful as a means of transporting blood appropriately to where it is needed,” Fujita said. “We hope to see (further) testing of blood transport by drones in the future.”

The delivery drone used

Given Wingcopter’s participation, the team used Wingcopter’s flagship delivery drone, the Wingcopter 198. The Wingcopter 198 stands out for its patented tilt-rotor mechanism and proprietary software algorithms. With it the Wingcopter 198 can take off and land vertically like a multicopter. Meanwhile, it can fly long distances as efficiently and quickly as a fixed-wing aircraft, even in rain and wind.

Wingcopter, which is a German company, has major partnerships including package delivery giant UPS. It also had a partnership with U.S.-based medical service provider Air Methods, running medical drone deliveries in Kansas.

But in recent years, it has found especial success in Japan. For example, In March 2024, Wingcopter applied for type certification in Japan for its flagship drone. It became the first foreign company to gain acceptance for the type certification process by the Japan Civil Aviation Bureau (JCAB) of the Ministry of Land, Infrastructure, Transport and Tourism.

With Wingcopter’s ongoing pursuit of type certification in Japan — allowing Beyond Visual Line of Sight (BVLOS) flights over populated areas — the delivery drone maker would cement its position as a leader in the sector.

Wingcopter has about 150 employees and has investors including the European Investment Bank, REWE Group, Salvia, XAI technologies and Xplorer Capital. Much of that was raised through Wingcopter’s $22 million Series A in early 2021, which was followed up with a Series B extension in June 2022 that brought its funding to $42 million.

What the blood delivery by drone test means for the drone industry ahead

The project demonstrated its ability to handle real-world conditions, including strict temperature controls and vibration management. That all provides a strong case for scaling up operations. With labor shortages and emergencies posing significant challenges particularly in Japan (but even worldwide), this trial serves as a blueprint for integrating drones into conventional logistics networks.

For the drone industry, the significance extends beyond medical applications. Rather, it paves the way for broader adoption of drones in commercial and humanitarian efforts.

As ITOCHU explores integrating multiple drones into traditional supply networks, the industry inches closer to realizing sustainable, scalable drone logistics.

Looking ahead, the Wingcopter 198 could become a staple in Japan’s healthcare and logistics landscape. Exepct deliveries of not only medical supplies but also pharmaceuticals and high-priority goods. The ongoing certification process — coupled with successful trials like this one —— signals a shift toward widespread commercial drone use. That’s particularly true in regions where traditional methods fall short.

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Who needs Santa when a drone can do all your mall shopping for you? Two Dallas shopping malls now offer drone delivery as a service.

The news comes today out of Wing, which will run drone deliveries out of two Dallas shopping malls in collaboration with DoorDash and real estate investment company Brookfield Properties (which owns the two Texas malls). And the news comes just in time for the busy, last-minute holiday shopping season, as the first deliveries are taking off today.

The service for now is available at two Dallas-area malls: Stonebriar Centre in Frisco and Hulen Mall in Fort Worth. Though Wing has already been conducting drone deliveries at malls in Australia, today’s news markets the first-of-its-kind drone delivery service at American shopping malls.

Customers shopping at either of the two malls can now receive goods from more than 50 merchants. And Wing promises orders could arrive in as little as 15 minutes. Here’s how it works:

1. Customers place an order through the DoorDash app.
2. Eligible customers will see the option to have their items delivered by a Wing drone.
3. DoorDash employees will gather the items ordered from various mall stores, and then bring them to the drones, where items are loaded to take flight.
4. The Drones fly at speeds of about 65 mph and a height of approximately 150 feet to customer homes.
5. Once at the delivery address, Wing drones don’t actually land. They simply lower deliveries to the ground at their destination via a tether.

The launch marks another milestone for Wing, which has already completed over 400,000 commercial deliveries worldwide, including pilot programs in Melbourne, Australia, and Christiansburg, Virginia. This new collaboration represents a big step in revitalizing what has sometimes been the struggling mall industry (given the proliferation of online shopping). And with drones, Wing can use otherwise underutilized spaces like rooftops and parking lots (that’s where it’s drones take off) to improve the shopping experience.

Dallas-Fort Worth: a growing hub for drone innovation

The news of drone delivery from Dallas shopping malls is hardly the first time Dallas-Fort Worth has made headlines as a hub for drone technology. In fact, earlier this month, news broke that Texas State Highway 130 (SH130) would turn into a “superhighway for drones.” that basically means the area over that highway is now considered an Intelligent Infrastructure Economic Zone (IIEZ), with drone “zones” set up along the highway, enabling continuous drone operations across a 30-square-mile area per zone for tasks encompassing inspections, security and public safety.

And of course, Wing (as well as other drone delivery companies like Flytrex) have seen strong success in other types of drone deliveries. Wing already has an extensive partnership with Walmart to conduct drone deliveries out of a large handful of Walmart stores in and around Dallas. I even tried a Walmart drone delivery myself (and can confirm it works).

You can watch my own experiencing ordering Powerade from a Walmart in Frisco (and getting it delivered via drone) here:

Companies like Wing have set up operations in Texas, drawn to the state for factors including its favorable regulatory environment, mild climate, flat landscape and tech-savvy population.

In fact, drones are so popular in Texas, that many have riffed on the term ‘Lone Star State,’ now calling it the “Drone Star State.”

What’s next for drone delivery at shopping malls?

Drone delivery is reshaping the retail and logistics sectors, and partnerships like this one between Wing, DoorDash, and Brookfield Properties highlight how drones can integrate with existing infrastructure to meet evolving consumer demands.

This integration of drone technology into malls’ operations could set a precedent for shopping centers worldwide, enabling businesses to expand their reach and provide a futuristic customer experience. As drone delivery becomes more commonplace, it’s likely that other malls and retailers will adopt similar strategies to remain competitive.

For Dallas-Fort Worth residents eager to try the new service, eligibility for drone delivery can be checked at wing.com/doordash. Not eligible? A spokesperson for Wing said the company intends to add more sites in 2025.

But for now — as the holiday season kicks into gear — DFW’s skies may soon be buzzing with the sound of drones, delivering everything from last-minute gifts to your favorite meals.

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Matternet was one of the early names in the drone delivery space. Initially, it promoted its drones in healthcare logistics, something we’ve see other companies like Zipline and Wing (two of the largest drone delivery companies out there) do too. These days, Matternet is emphasizing its new Silicon Valley drone delivery service, which brings goods like chocolate and canned drinks to homes.

Matternet’s Silicon Valley drone delivery service kicked off on Aug. 30, 2024. Though it is still in beta mode (largely driven by some outstanding FAA approvals that require Matternet to keep their Silicon Valley drones flying visual line of sight), I had to check it out for myself.

I live in San Francisco, so this November I grabbed a Getaround and drove about an hour down to Mountain View to get my own drone delivery.

Pending successful tests, Matternet seeks to position itself as a leader in urban logistics. After all, it’s drones are flying over complex, densely populated areas.

So how are Matternet’s drone deliveries looking so far? I have two separate videos, based on my tour of Matternet’s Silicon Valley delivery drone operations.

First, check out my experience getting a drone delivery made (yes, I ordered chocolate!) in this 90-second video:

From there, go behind the scenes at Matternet headquarters in my second video. You’ll see where they load, launch and land the drones.

In my second of two 90-second videos centered around my Matternet drone delivery experience, I show you the Matternet Landing Station, their fleet management software, and Matternet’s drone assembly zone. Watch it below:

Still not enough Matternet content? Read on to my guide detailing the latest on Matternet’s Silicon Valley drone deliveries, and what’s ahead for the company:

How the Silicon Valley drone deliveries work

Matternet’s Silicon Valley drone deliveries rely on the company’s FAA Type Certified Matternet M2 drones. The Matternet M2 Drone Delivery platform stands out as the only Federal Aviation Administration (FAA) Type Certified platform for drone delivery in the U.S.

Where Matternet drones fly

At the present moment, the Federal Aviation Administration requires Matternet to keep their Silicon Valley drone flights within visual line of sight. That means drones can’t fly that far. For now, they’re contained to a small radius around their headquarters in Mountain View. There, someone stands outside, keeping their eyes on the drones. Since the drones never actually land (more on the drone’s drop system later) and stick to about 250 feet above ground level, someone can still see the drone fairly far out.

Given that limitation, Matternet drones for now can only fly to a small handful of eligible homes in the Bay Area cities of Mountain View and Sunnyvale. Of course, it’s not exactly scalable. But, the Matternet team says it expects that to change once it gets FAA approval to fly beyond visual line of sight. That could be by the end of the year (more on that later).

How customers order through Matternet

Unlike other more established operations, like Wing — which leverages its Walmart partnership to allow customers to order through the Walmart app — Matternet customers order directly through a Matternet web store

There, customers can order the same types of snacks one might expect to see stocked in the snack case of a well-funded tech startup. That includes items like Blue Bottle Organic New Orleans style iced coffee, GoGo SqueeZ organic applesauce and Ritter Sport chocolates.

To be eligible to order, customers must first sign in. To gain sign-in information, customers have to apply through a contact form, which takes into account factors before approving your account (e.g. where you live).

There’s also a limit of when you can order. For now, Matternet’s Silicon Valley drone delivery operations run just a few days a week. Even on those days, it’s only for a handful of hours.

Since I don’t have an account (and don’t have a house in Mountain View), I worked with Matternet’s team to place an order through their account. I had my drone delivery shipped to a local park. I ordered a Tony’s Chocolonely chocolate bar filled with pretzels and toffee.

How Matternet orders are fulfilled

For the current beta test, deliveries all begin at a central hub at Matternet’s office, where they’re loaded with customer orders. As of now, a Matternet employee (typically someone from the Flight Ops team) fulfills the order by grabbing the snack item, which is stored onsite at Matternet’s headquarters.

The Matternet employee then packs it into a custom, Matternet delivery drone box. They then head to the parking lot, which has been turned into a flight takeoff zone. They load the package onto the drone, and then the drone takes off.

How you get your Matternet drone delivery

Assuming you’re approved and you’ve ordered, wait for the drone to arrive.

My drone delivery order came in seven minutes. It flew over a freeway. As the crow flies, the distance wasn’t very far at all. According to Google Maps driving directions, driving between the two points would take five minutes without traffic. I was pretty impressed by the quick speed, considering my chocolate needed to be packaged up and loaded onto the drone, too.

Matternet drones rely on a Tether Drop system which enables them to deliver packages directly to specific areas like doorsteps (or in my case, a park). After delivery, the drones return to the hub, recharge, pick up their next package and are back in the sky.

Scaling urban drone delivery with ANRA Technologies partnership

To aid in its efforts to scale deliveries across urban landscapes, Matternet in November 2024 announced a partnership with ANRA Technologies, which builds flight planning and UAS traffic management (UTM) software.

ANRA is considered an expert in UAS Traffic Management (UTM), having executed some high-profile projects around the world. Among its biggest includes a test with Japan’s New Energy and Industrial Technology Development Organization involving All Nippon Airways (ANA). 

At Matternet’s headquarters, you can see ANRA technology on display in the flight control room, where multiple monitors display different views such as other aircraft in the vicinity, altitude of Matternet’s drones and other critical airspace information.

Once it gains FAA approval, Matternet will use ANRA’s airspace management tools to conduct Beyond Visual Line of Sight (BVLOS) flights in the shared, urban airspace above Silicon Valley.

What’s next for Matternet Silicon Valley drone deliveries?

Whereas bigger players like Wing serve far more eligible homes (and at far more hours during the day), Matternet’s Silicon Valley drone delivery service feels more like a beta test for now.

That’s largely due to current limitations from the FAA that require Matternet to keep their Silicon Valley delivery drones within visual line of sight. That will change though once the FAA approval comes in.

As for what we’re waiting on? Matternet is working with the FAA to adhere to standards under the National Environmental Policy Act (NEPA). Once that’s complete, Matternet will operate BVLOS under FAA Part 135. The company says it’s targeting the first half of 2025.

And for it’s part, Matternet is ready to fly beyond visual line of sight (BVLOS). In fact, Matternet’s delivery operations in Switzerland began flying BVLOS way back in 2017. And even in the US, Matternet partners with UPS, which was the first 135 operator to fly BVLOS drone delivery operations in the U.S. UPS gained that approval in November 2023, which it exercises by way of flying the Matternet M2 drone.

Matternet currently averages about 10-20 deliveries per day (though it intends to grow that number pending BVLOS approvals).

Matternet’s Landing Station

Speaking of scaling deliveries, there’s also far more that can be done in terms of automation. When I visited, a human was loading all the packages on the drone. But that should change, too.

Matternet has a Landing Station, which is also in test mode. The loading station (which is quite elegant) would eliminate how close humans need to get to the drones. Instead, a human would place the package in a machine, where it would be automatically attached to the drone. The loading station would handled automated charging or battery swapping, too.

Matternet’s vision for their consumer drone deliveries includes expanding to restaurants. These Landing Stations could be place outside, making it easy for restaurant employees to interact with their drones and automate restaurant drone deliveries.

Matternet says it expects to rollout its Landing Station in the fourth quarter of 2025. And when they happen, Matternet is targeting 300 deliveries per day, per hub.

Do you live in Mountain View or Sunnyvale and want to try out Matternet’s drone delivery? You can sign up at delivery.matternet.com.

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It’s one thing if it’s a cool party trick, but what about whether it’s actually useful? A new 2024 study digs into public perception around drone delivery, and in particular how valuable people think it really is.

The results might surprise you. Because while drones are seen as a potential game-changer in certain areas such as emergency response, their appeal for everyday drone deliveries is more nuanced.

That’s according to research funded by UK Research and Innovation’s Future Flight Challenge and delivered by Innovate UK and the Economic and Social Research Council (ESRC). The survey portion of the research included a survey of 3,279 adults aged 18 and older living in the U.K. The survey, which was carried out by YouGov, was conducted in March and April 2024, and it was published in July 2024.

Where the general public sees drone delivery as most useful

As a whole, the majority of survey respondents see value in drone delivery in all sorts of scenarios. But more people see drone delivery as valuable in some scenarios versus others. Here are some of those nuances:

Drone delivery may be more valuable depending on the goods they carry

People think of drone delivery as more useful when the drones are bringing critical goods, like medical supplies, blood samples or tests. That’s as opposed to drones delivering your standard mail and packages. In the survey, 85% of respondents said using drones to deliver medial supplies, blood samples of tests offered a net benefit, with just 5% saying such a use case was outright not beneficial.

Meanwhile, only 77% found value in drones delivering mail, parcels or packages to local collection hubs, with 10% saying it was flat out not useful.

That figure is slightly higher than the 76% who found it useful for drones to deliver directly to individual households. (13% called drone delivery to individual households flat out not useful).

Perhaps in anticipation of such a response, many drone delivery companies have heavily touted their medical deliveries. In fact, Zipline — which is the world’s largest drone delivery company and recently crossed the 1 million drone delivery milestone — focuses primarily on medical deliveries in developing countries. It’s 1 millionth delivery consisted of two bags of IV fluid flying from Zipline’s distribution center in Ghana’s Western North Region to a health facility nearby.

Meanwhile, Wing is working Apian, which is a medical drone startup founded by a team of doctors from the UK’s National Health Service (NHS) and perhaps coincidentally, ex-Google employees. Together, they’re building a drone delivery network that’ll shuttle medical supplies from pharmacies and other healthcare providers to homes in South Dublin, Ireland.

Yet both of those two companies also deliver stuff (as well as restaurant meals). Both Wing and Zipline partner with Walmart to send stuff to customer’s homes. And yes, you can check out the time I got Powerade and Alfredo sauce delivered via a Wing drone using goods ordered from Walmart.

Zipline just added a few major restaurant partners including Sweetgreen, Panera Bread and Jet’s Pizza. Some companies like Flytrex focus on food deliveries entirely (Jersey Mike’s is one of their biggest clients).

Drone delivery may be more valuable depending on the place

As that chart above indicates, people are generally more likely to see drones as beneficial in rural and remote areas compared to urban and suburban ones. Of the survey respondents, 74% said drone delivery for medical supplies had value in remote areas, and 75% said they had value in rural areas. That’s much higher than the 67% of people who considered drone delivery valuable in suburban areas, or the 63% people who considered it valuable in urban areas.

While most people considered home deliveries overall less valuable than medical deliveries, repsondents still agreed that home deliveries were at least more valuable if the drones were flying to rural areas. Here’s how many respondents considered the use of drones for home deliveries to be valuable, broken down by type of region:

• Remote/isolated areas: 61% of respondents find drone delivery valuable
• Rural areas: 54% of respondents find drone delivery valuable
• Sub-urban areas: 36% of respondents find drone delivery valuable
• Urban areas: 30% of respondents find drone delivery valuable

This perhaps makes sense. If you live in a city and need milk, there’s probably a corner store a block away. If you live in a rural area, it could be a long drive for a single carton of milk.

And sometimes remote areas aren’t really that remote as the crow flies, but they might be remote because of some sort of natural barrier like a river. Minimal infrastructure might mean driving for miles to get to the bridge to cross the river — even if the grocery story is really just on the side. Drones don’t need a bridge to cross a river, making them a valuable tool to deliver milk in that scenario.

Still, it really proves people care about what the drones are carrying. More people (63%) find value in drones delivering medical supplies to urban areas than even the number of people (61%) who see value in drones delivering home goods to rural areas.

Texas has thrived as a hub for drone delivery. In fact, it’s earned the title of “Drone Star State.” That’s for a few reasons, including a generally favorable climate and flat terrain, but also supportive political and social environments.

Age differences

There is also some age variability, with younger people generally seeing more value in drone delivery in older folks. For example, 39% of people between the ages of 18 and 34 said they found value in drone deliveries to urban areas, while just 21% of people 55 and older said the same.

How likely is drone delivery in the next decade?

Remember back in 2013 when Jeff Bezos announced on national television his goal to make Amazon drones a reality? That’s hardly the case. Only this summer did Amazon share details about plans to launch tests in the Phoenix Metro Area. Its only other U.S. operations are limited to College Station, Texas.

Other drone companies are faring better, with actual customer deliveries on the books — and new innovation ongoing. For example, Zipline has big plans to launch its Platform 2 aircraft in Texas in 2024.

But even still, the public isn’t convinced. According to UK Research and Innovation’s Future Flight Challenge survey, just 18% think widespread drone delivery to individual households will be very likely within the next 10 years. 53% think it is at least somewhat likely.

That optimism is far lower than the public perception of the likelihood of other drone projects like inspections, surveillance and farming.

Other public ideas about drone delivery

For what it’s worth, just because the public doesn’t exactly think of drone delivery being useful doesn’t mean they hate the idea. In fact, a 2019 survey conducted by Virginia Tech researchers found that nearly 9 in 10 people are eager for delivery drones to help run errands for them.

And actual customers have vouched it’s good. DroneUp, which is a U.S.-based drone delivery service provider, surveyed customers who used its drone delivery service something in the last quarter of 2023. The survey found that 90% of customers gave their delivery experience a positive review, citing how packages arrived safely, on time and in perfect condition. The survey also found a benefit for businesses. In fact, 36% of survey respondents admitted that they added additional items to their cart — suggesting that drones may be a key driver of incremental purchases.

And in terms of stimulating the economy, there’s perhaps nothing more useful about drone deliveries than that.

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It’s been a rough year for DroneUp. In August 2024, news came out that DroneUp would end its drone delivery partnership with Walmart in three states: Arizona, Florida and Utah. With that, DroneUp job cuts occurred. The company laid off about 17% of its staff, which is about 70 employees.

Is this a sign that the drone industry is doomed?

Maybe. As first reported by Axios, DroneUp spends about $30 to deliver a package by drone. For services that promises to bring you your lunch, or other items you want in a pinch like a new backpack for your kid who already tore a hole in theirs, or some sugar because you ran out mid-baking spree, $30 is likely the same or more than the value of the items being delivered. Meanwhile, other companies like Wing and Zipline won’t discuss their costs per delivery — suggesting the competitors aren’t necessarily doing it for much less.

But the outlook is at least brighter for other drone delivery companies that have been generally experiencing growth. That includes the biggest players like Google-affiliated Wing, as well as Zipline, which is generally considered the world’s biggest drone delivery company. Smaller players like Flytrex and Manna also bring fresh industry ideas and small wins to the table.

Reasons to be optimistic about drone delivery

Flytrex doesn’t have a ton of flights to its name, relative to some of the competitors. For example, Zipline crossed the 1 million drone delivery milestone in 2024. That’s through a combination of deliveries including food from restaurants and medical supplies.

Competitors are scaling drone deliveries big time

In the early days of drone delivery, companies would report on one-off drone deliveries. Visual observors would have eyes on the drone at all times, and it would be a highly choreographed, personalized process.

Of course, that’s not sustainable. The more automation, the better (and cheaper). And to enable that, companies will truly need to be able to fly beyond visual line of sight (BVLOS) — which is not fully legal yet.

DroneUp did put out a bizarre news release in 2024 announcing that it “has achieved a new industry benchmark of 500 deliveries made in a single day.” It’s all a bit odd, considering we know competitors like Wing have long been capable of much more. For example, just about this time last year, Wing told us it was making close to 1,000 deliveries in a region in a single day.

The FAA is issuing some BVLOS approvals (though not necessarily to DroneUp)

Speaking of BVLOS, some companies do have authorizations. In fact, the FAA in July 2024 authorized both Wing and Zipline to conduct commercial drone flights without visual observers in the same Dallas-area airspace. That’s a first for U.S. aviation.

It also means the two companies can now deliver packages without actually stationing humans along the route to maintain eyes on the drone — something other companies still need to do in the U.S. to comply with Part 107 rules around visual observers.

Restaurants like it for marketing

Some companies like Flytrex focus solely on delivering restaurant meals via drone. Flytrex restaurant partners include Little Caesars, Charleys Philly Steaks,  Brinker International (which is the parent company of major chains including Chili’s Grill & Bar and Maggiano’s Little Italy) and Jersey Mike’s. Sure, Flytrex is much smaller. Its latest milestone — 100,000 drone deliveries made — occurred in July 2024 and is merely a fraction of Zipline’s share.

Google-sibling company Wing also dominates the retail and food delivery space. This summer, Australia got a treat when Wing announced an expansion to the Melbourne area. Wing will partner with DoorDash, which it’s already been working with elsewhere in Australia. In the U.S.,  Wing works closely with Walmart (though so does DroneUp).

What DroneUp needs to do to catch up

These days, DroneUp is solely focused on its Walmart deliveries in Texas, where Walmart also operates with Wing and Zipline. For DroneUp to really be sustainable, it will need to gain that same FAA approval for BVLOS flights already granted to Wing and Zipline.

BVLOS approvals

For now, DroneUp does holds some critical Beyond Visual Line of Sight (BVLOS) waivers issued through the Federal Aviation Administration (FAA), but it’ll still need more autonomy.

More research

For what it’s worth, DroneUp already works closely with the research and development facility at Richard Bland College (RBC). Richard Bland College is the public junior college associated with the College of William & Mary in Prince George County, Virginia. There, academics perform capacity testing on behalf of DroneUp’s commercial partners.

Hardware wins

It’s perhaps tough to compete with Wing, which has the capacity to experiment with all sorts of aircraft prototypes. With products like the Pixel, Pixelbook, Nest, GFiber Webpass, Google Home and more, it’s not surprising that Wing’s aircraft are also impressive hardware feats.

DroneUp in March 2024 launched an all-new, compelling piece of hardware called the autonomous Ecosystem. Its Ecosystem entails a series of operations stations around a region. There, clients (say a retailer) can drop off a package into what’s kind of like a massive mail box. The drone can automatically grab that package and fly off to another station. There, the receiver would roll up to that station and retrieve their package.

DroneUp’s Ecosystem model marks a significant departure from competitors like Wing or Zipline, both of which fly over (and drop off packages) directly to suburban, single-family residences.

DroneUp has said its system is more scalable. After all, there’s no messing around with figuring out which backyards do and don’t work. Plus, it’s generally more cost-efficient and safe. We’ll be following to see how well it works in practice.

Software wins

Software is critical just as much as hardware. For what it’s worth, DroneUp already has its own proprietary software called Uncrew. The cloud-based platform allows users to manage missions from anywhere in the world, using real-time geodata from unmanned traffic management (UTM) systems. By knowing which drones are in the sky, the software can generate accurate airspace, terrain, and traffic information. From there, it can generate automated mission plans. As of now, one operator can oversee up to 20 concurrent missions.

While 20 missions at the time is the figure for now, that figure will eventually have to grow for DroneUp to take the lead as most efficient drone delivery platform. DroneUp leaders say their teams are working on that very thing right now.

“For DroneUp’s commercial partners, the ultimate goal is to increase the number of deliveries that can be safely completed while diversifying the types of items and packages that drones can effectively manage,” said John Vernon, CTO of DroneUp, in a prepared statement. “Testing at RBC will soon address new weight capacities that eclipse our 10-pound limit, further increasing the package size and testing of many-to-many drone operations.”

In light of the DroneUp job cuts, how are you feeling about the state of delivery drones? Share your thoughts in the comments!

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Not everything is rosy in the land of drone delivery. DroneUp, which is a U.S.-based drone delivery service backed by retail giant Walmart, announced significant layoffs and operational cutbacks. The DroneUp layoffs comes as the company faces challenges in financial sustainability.

As first reported by Axios, DroneUp spends about $30 to deliver a package by drone. Though the company has goals to get prices down to about $7 (that’s more akin to ground-based delivery), even that’s a tough sell among customers who expect free delivery.

Given those financial challenges — as well as regulatory hurdles and infrastructure limitations — DroneUp made the move to lay off about 70 employees, which amounts to about 17% of its staff.

With that, the company is also ceasing its operations in all states outside of Texas for now. That includes closing drone delivery hubs in Phoenix, Salt Lake City and Tampa.

“Layoffs are an unfortunate part of a business that is literally defining its own industry,” according to a statement provided to The Drone Girl by DroneUp. “Like so many innovators before us, the decision to automate often leads to similar circumstances but we acknowledge that this is a difficult time, especially for those with whom we’ve parted ways. While we are deeply grateful for their service, DroneUp remains committed to a strategy that supports our commercial partners and their customers.”

What’s next after the DroneUp layoffs?

For now, DroneUp will focus its efforts purely on Texas, where it runs flights out of select Walmart stores in the Dallas area. (Zipline and Wing, two other drone delivery companies, also work with Walmart in Texas).

DroneUp has differentiated itself from competitors like Wing and Zipline with unique hardware and software. That includes its proprietary software called Uncrew, which helps manage multiple missions in one go.

DroneUp uses a unique technology called the autonomous Ecosystem to drop off and pick up packages. Ecosystem operates like a series of mailboxes around a region. With it, retailers can drop off a package into a giant box the size of a few humans. On top of it, the drone can automatically grab that package and fly off to another station. From there, a receiver would arrive at their nearest Ecosystem station and pick up their package.

It’s certainly a different system then one that competitors follow (which often entails dropping packages directly into customers’ yards. But, it signals that DroneUp is still investing in new technology — and open to innovating on new strategies.

“The lessons we have learned in the last several years have informed a strategy to reshape the last mile of delivery with DroneUp’s Ecosystem platform that is economically feasible for sellers and scalable for buyers,” according to a statement from DroneUp.”

Though DroneUp is laying off a solid chunk of its team — which now totals 418 people according to a CNBC report, the company still has bigger visions. In fact, its CEO Tom Walker said DroneUp has goals to hire even more people than it laid off.

Regulatory challenges to blame for DroneUp layoffs?

The big hurdle before DroneUp can hire more staff? Many experts — and DroneUp itself — point to regulatory issues.

“The drone delivery industry is at a pivotal moment where the focus is shifting from regulatory approvals to achieving true commercial viability,” according to an email to The Drone Girl from Yariv Bash.

Bash is the CEO and founder of Flytrex. Flytrex is another drone delivery company that primarily focuses on food deliveries via drone.

“Walmart’s decision to halt DroneUp services highlights the need for a robust system that both meets regulatory standards and delivers on the promise of cost-effective and scalable operations,” he said. “You can’t deliver groceries in a Bentley. It’s simply too expensive.”

The Federal Aviation Administration (FAA) has imposed significant regulatory challenges that have limited the widespread adoption of drone delivery. These regulations, while designed to ensure safety and prevent accidents, have also created barriers for drone delivery companies. Strict rules governing flight operations and airspace restrictions (such as flights over people) have made it difficult for companies to scale their drone delivery services beyond limited areas.

Additionally, the FAA’s approval process for new drone models and technologies can be time-consuming and costly. All that further hinders innovation in the industry.

The FAA has made some strides to remove those barriers. Perhaps not coincidentally, most of those strides are happening in Texas, the lone state where DroneUp continues to operate. In fact, just last month, the FAA authorized commercial drone flights without visual observers in the same Dallas-area airspace. That’s a first for U.S. aviation.

But the authorizations exclude DroneUp. Instead, the specifically include the two competitors, Wing and Zipline, allowing them to deliver packages while keeping their drones safely separated using Unmanned Aircraft System Traffic Management (UTM) technology. In this system, the industry manages the airspace with rigorous FAA safety oversight. 

What hope is there for drone delivery ahead?

Those DroneUp wasn’t included in the approval done in July, it does signal some movement for drone delivery. If Wing and Zipline can get such approvals, surely other companies can.

And DroneUp is counting on it — so much that they intend to hire bigger and better (when they can).

“It remains our ambition to grow DroneUp, nationwide,” according to a DroneUp statement. “Doing so would rely on a bigger workforce in roles that will be defined by what regulators permit, and what partners and their customers need.”

Ideally that’ll happen sooner rather tha later. In fact, the FAA said it expects initial flights using UTM services to begin in August. The FAA added that it intends to issue more authorizations in the Dallas area soon. 

And in a similar vein, the FAA is currently close to releasing what’s called “the Normalizing UAS BVLOS Notice of Proposed Rulemaking (NPRM).” This would enable drone operators to expand operations beyond what their eyes can say. The FAA says that document is on track for release later this year.

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The company perhaps most famous for delivering sandwiches from Jersey Mike’s and pizza from Little Caesars just crossed a milestone. Flytrex, which is a drone delivery company based in the U.S., just made its 100,000th drone delivery.

Unlike other drone delivery competitors that delivery items like medical supplies, Flytrex solely focuses on using drones to deliver food. That includes goods from grocery stores or prepared meals from restaurants. Flytrex operates in certain suburbs of both North Carolina and Texas. Little Caesars, Charleys Philly Steaks,  Brinker International (which is the parent company of major chains including Chili’s Grill & Bar and Maggiano’s Little Italy) and Jersey Mike’s are its most notable clients.

Over at Jersey Mike’s, it seems as customers love having drone delivery as an option.

“At Jersey Mike’s Subs, we are focused on bringing our customers the best experience – and that includes delivery that is convenient for their schedules and preferences,” said Scott Scherer, Chief Information Officer at Jersey Mike’s Franchise Systems, Inc. in a prepared statement. “Partnering with Flytrex, our fans can enjoy our authentic, fresh sliced and fresh grilled sub sandwiches how and when they want them.”

Drone delivery specifically in the food delivery space offers a few benefits including the potential for:

• Faster delivery speeds (drones don’t get stuck in traffic)
• Reduced carbon emissions
• Fewer road accidents

In fact, according to Cornell University research, about half of food delivery drivers in a survey said they had been in a collision while making a delivery. 

Flytrex also claims it’s much faster than car deliveries. According to Flytrex data, the average Flytrex meal delivery time is just four minutes and 30 seconds. Compare that to what Flytrex states is between 8-12 minutes for a car to execute the same delivery without traffic. It’s an even heftier 15-20 minutes with traffic.

What to know about Flytrex

Flytrex first landed in the U.S. in late 20019, initially launching its wide-scale U.S. flights from Holly Springs, North Carolina. Prior to that, the Israel-based drone delivery company garnered some attention for its drone delivery operations in Reykjavik, Iceland.

Now, Flytrex operates in a few other areas of North Carolina, including Durham and Raeford. A close relationship with the North Carolina Department of Transportation has enabled Flytrex to clock in some successes. That includes in early 2023, when Flytrex scored approval to conduct drone deliveries under a Standard Part 135 Air Carrier Certification from the FAA. 

Besides the decision to hone in on food deliveries, Flytrex CEO Yariv Bash has taken a fairly strong stance in a few aspects of drones. That includes early criticism of competitors who relied on drones to land for package delivery. At the time, Bash cited issues such as kids and pets getting in the way of the drone, causing unnecessary problems as it lands. These days, very few drone delivery companies land their drones — for reasons that Bash predicted.

How Flytrex compares to other drone delivery companies

While 100,000 meals delivered might seem like a big deal, it’s still small potatoes in the broader drone delivery world. In April 2024, Zipline (which most largely considered world’s largest drone delivery company) crossed the 1 million drone delivery milestone. Flytrex’s milestone is only a tiny fraction of that.

Zipline largely focuses on medical deliveries in developing countries. After all, it’s 1 millionth delivery entailed two bags of IV fluid. They flew from Zipline’s distribution center in Ghana’s Western North Region to a health facility nearby.

But even Zipline has leaned into fast food deliveries, including a recent partnership with fast casual salad chain Sweetgreen.

Meanwhile, Google-sibling company Wing is seriously dominating the food delivery space. That’s particularly evident in Australia, where this summer it announced an expansion to the Melbourne area. There, Wing will partner with DoorDash, which it’s already been working with elsewhere in Australia. In the U.S.,  Wing works closely with Walmart.

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After more than five years of largely successful drone operations in the state of Queensland, Australia, Wing’s drone delivery operations are finally expanding to a different Australian state. Wing, the drone delivery arm affiliated with Google, announced in July 2024 that it is headed to the Melbourne area. That makes Wing’s first operations in Victoria, Australia.

The Wing deliveries in Victoria will be available to certain homes in the greater-Melbourne area. Given the radius upon which Wing will operate in Victoria, this will mark Wing’s largest approved delivery area in Australia to-date.

For the Melbourne deliveries, Wing will continue to partner with DoorDash. The Wing partnership with DoorDash first took off in November 2022 in Logan, Australia. Logan, a city in Queensland, has been one of the primary sites for Wing’s Australian operations thus far. Through it, eligible customers can place orders for certain, drone delivery-eligible items directly through their DoorDash apps.

The new Melbourne expansion will follow a similar model of drone deliveries already happening at the Grand Plaza Mall in Logan City, Australia. It’s called a store-to-door model. With it, Wing establishes what it calls its “drone nest” with a store or shopping center. From there, drones directly depart from that store or shopping center — rather than from a separate warehouse. (Here’s a deep dive into how Wing’s deliveries from the shopping mall rooftop work.)

With its Melbourne expansion, Wing will place its first Nest at the Eastland Shopping Centre, which is located in the eastern Melbourne suburb of Ringwood, Victoria, Australia. Considered the fourth-largest shopping centre in Australia, it has more than 340 retail stores and services. The location will unlock drone delivery access to more than 250,000 Melbourne-area residents.

That large of an area — and that many potential customers — means more reliance on autonomy. In turn, that means less reliance on humans. Wing says its Melbourne operations will have a 50-1 drone to pilot ratio, meaning a single pilot to oversee up to 50 drones in the air at any given time. That’s a 3x increase over Wing’s prior drone delivery approvals.

Related read: New Wing delivery drone prototypes include design that carries 7 lb packages

The state of Wing drone deliveries in 2024

In a July 2024 statement, Wing called 2024 “the year of drone delivery.” And it very well may be.

Other recent Wing drone delivery expansions this month have included a partnership between Wing, Apian, Blackrock Health, St. Vincent’s Private Hospital, Medtronic. With that, those companies are working on a drone delivery trial of all sorts of medical supplies and devices to hospitals around Dublin. Though, that one is a fairly small test, with only about an estimated 100 flights weekly.

And over in the U.S., Wing is also growing. Following news that Walmart would integrate drone delivery directly into its own Walmart app, Wing has officially launched service from two Texas Walmart locations (stores in Arlington and Fort Worth). With that, Wing and Walmart now offer drone delivery from six locations to homes in more than a dozen localities across the Dallas-Fort Worth metroplex.

Early this year, Wing also brought that DoorDash partnership that first kicked off in Australia over to Christiansburg, Virginia. With that, eligible residents who order specifically from Wendy’s via DoorDash can opt to get a Frosty, Baconator or other Wendy’s order delivered via drone.

Oh, and if you’ve never tried DoorDash before, you can use this link to get $5 off your first DoorDash order — whether or not it’s delivered via drone.

Related read: 11 beloved restaurants that you can order drone delivery from in America

Other drone delivery growth in 2024

Of course, Wing isn’t the only company growing its drone delivery offerings this year. Also this month, we got critical deals about a planned Amazon drone delivery offering in Arizona’s Phoenix metro area. Amazon is also currently working on efforts to expand its existing College Station, Texas drone deliveries.

Meanwhile, Zipline (which is considered the world’s largest drone delivery operator) crossed a huge milestone in April 2024 when it made its one millionth commercial drone delivery to an actual customer.

And even smaller players are innovating big. For example, DroneUp pioneered a compelling new Ecosystem platform in 2024. That platform involves standalone units (about the size of two parking spaces) serving as mini package takeoff and delivery centers. DroneUp can place these basically anywhere throughout a city. From there, where customers can pick up their drone-delivered packages without actually touching the drone itself.

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