Zipline, a drone delivery company, has secured $1.5 billion in funding at a post-money valuation of $21.5 billion. The investment will be used to build a nationwide delivery network in the United States, increase manufacturing capacity, and accelerate hiring. The funding round was led by Paradigm, WCM Investment Management, and Layer Global, with participation from existing and new investors.
The new capital will enable Zipline to scale its autonomous delivery operations and expand its infrastructure to support a broader U.S. network. The company plans to increase manufacturing capacity and recruit additional employees as it seeks to grow its delivery footprint. Partnerships with large retailers and delivery platforms are a key part of Zipline's expansion strategy.
Zipline has announced a new multiyear national agreement with Walmart to launch 300 additional delivery sites, significantly expanding their existing relationship. Uber, which is also an investor in Zipline, aims to achieve one million drone deliveries a day through the partnership by 2029. The two companies are working to integrate autonomous drone deliveries into Uber Eats.
Zipline has made significant progress in the Dallas-Fort Worth metropolitan area, delivering over one million orders this year. In October, the median delivery took 19 minutes from checkout, compared with over 30 minutes for traditional ground delivery. The company has also reported growing adoption among restaurant partners, with a 26% increase in delivery gross merchandise value over a certain period.
Founded in 2014, Zipline initially focused on transporting medical supplies to health facilities in Africa. The company has since expanded into food, retail, and agricultural deliveries, operating across multiple countries in Africa, the United States, and Japan. Zipline's autonomous aircraft have flown 150 million commercial miles without a safety incident.
The company is developing a nationwide distribution network in Côte d’Ivoire, expected to serve over 2,200 health facilities and 12 million people. Zipline's medical delivery operations help save over 14,000 lives annually. The latest financing comes as competition in autonomous delivery intensifies, with Amazon also expanding its drone delivery operations in the United States.
Zipline has introduced quieter flight technology and a next-generation aircraft designed to carry heavier deliveries over longer distances. The new capital will support Zipline's efforts to expand its U.S. manufacturing facilities, increase production, and recruit additional employees as it seeks to establish drone delivery as a mainstream part of the country's retail and logistics infrastructure.
Key points
- Zipline raises $1.5 billion at $21.5 billion valuation to expand U.S. drone delivery network.
- The company partners with Walmart and Uber to achieve one million drone deliveries a day by 2029.
- Zipline's autonomous aircraft have flown 150 million commercial miles without a safety incident.
