(Bloomberg) — Uber Technologies Inc. will trial food deliveries by drone with Flytrex Inc., marking the Rideshare giant’s return to experiments with logistics.
Tests with Flytrex’s autonomous drone delivery system will begin in Uber Eats pilot markets by the end of the year, according to a statement on Thursday. Uber is also making a financial investment into Flytrex “to accelerate the development and launch of the technology,” the companies said. Uber declined to disclose the size of the investment and said it wasn’t material.
While pizza-delivery drones are moving closer to reality in the US, there are limitations when it comes to scale. The Federal Aviation Administration tightly regulates airspace, with Flytrex one of only a handful of companies cleared to operate drones that fly beyond the operator’s visual range. Amazon.com Inc., which has FAA approval, has suffered setbacks with its own program after drones crashed in the rain.
Flytrex, founded in 2013, started as a supplier to drone manufacturers but pivoted to delivery, and now counts Walmart Inc. and Uber rival DoorDash Inc. among its customers.
Uber previously tested McDonald’s delivery by drone in San Diego in 2019 via its in-house aerial arm, Uber Elevate. But the program was hit by regulatory delays and Uber sold the division when it wound down expensive projects during the pandemic.
The deal marks a return of the now-profitable Uber to more ambitious bets, including autonomous ride-hailing, sidewalk delivery robots and helicopters. But Uber’s strategy relies on strategic partnerships and investments, rather than developing the technology and hardware in-house.
DoorDash, Uber’s competitor and the largest food delivery app by US market share, has offered drone delivery with Flytrex in parts of the Dallas-Fort Worth area since June. DoorDash also works with Alphabet Inc.’s Wing to test and provide drone delivery in some parts of Charlotte, North Carolina, Southwest Virginia and Australia.
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