Capital Injection for Domestic Production
Drone startup Zipline has raised $1.5 billion to expand its U.S. manufacturing facilities and scale up hiring, according to report details published by Supply Chain Dive. The funding round elevates the Silicon Valley company to a valuation of $21.5 billion.
The investment round was led by Paradigm, WCM Investment Management, and Layer Global. Additional participants included Uber, Valor Equity Partners, Fidelity Management and Research Co., Tiger Global, J.P. Morgan, Ark Invest, and Salesforce Ventures. Zipline currently operates a manufacturing facility in San Francisco and intends to use the capital to build out a nationwide delivery network.
Expanding Commercial Deals with Walmart
The financing coincides with a multi-year agreement expanding Zipline's commercial relationship with Walmart. The expanded deal adds 300 drone delivery locations, with potential for further expansion. Walmart has partnered with Zipline since 2021 as part of an effort that has completed more than 2 million drone deliveries to date.
Zipline's delivery system operates a two-part drone that hovers approximately 330 feet above ground level while lowering a tethered delivery pod containing the order. Greg Cathey, senior vice president of eCommerce Fulfillment Transformation at Walmart, stated that combining retail store proximity with drone delivery allows the company to offer faster fulfillment options to customers nationwide.
Targeting High-Volume Fulfillment with Uber
In addition to Walmart's expansion, Uber joined as an investor in Zipline's latest funding round following a commercial agreement signed in August. That partnership targets 1 million drone deliveries per day by the end of 2029.
As retail and mobility platforms scale autonomous last-mile delivery, mid-market logistics and operational teams must adapt to changing fulfillment speeds and evolving supplier partnerships across the broader supply chain.
