The company last week told Axios it is shuttering 18 Walmart delivery hubs in those cities to focus on operations in the Dallas-Fort Worth area, which the retailer in January announced would expand to reach 1.8 million people.

According to the report, the decision will cost the jobs of 70 employees, or about 17 percent of DroneUp’s headcount.

“Layoffs are an unfortunate part of a business that is literally defining its own industry,” a DroneUp spokesperson told FLYING. “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.”

The spokesperson declined to verify the number of sites that will close or how many employees will be affected.

After successfully trialing a drone delivery service near Walmart’s headquarters in Arkansas, DroneUp and the retailer expanded it to six states—Arkansas, Arizona, Florida, Texas, Utah, and Virginia—and an estimated 4 million people.

Per Axios, cutting Phoenix, Salt Lake City, and Tampa will leave the partners with 15 hubs, most of which are in Dallas-Fort Worth. The retailer is also working with drone delivery providers Zipline and Wing, a subsidiary of Google parent Alphabet, in that region.

“We are excited about the momentum and positive customer response we’ve experienced around drone delivery,” a Walmart spokesperson told FLYING. “This service will continue to evolve as we learn more about customer preferences and drone capabilities. Our drone delivery program is still a pilot, and by focusing our efforts in Dallas-Fort Worth, we can learn more about the potential to scale this innovative delivery option for Walmart’s customers.”

According to DroneUp CEO Tom Walker, it costs the firm about $30 to deliver a package, making its service unfeasible in its current form. To address that issue, the company is honing in on Dallas-Fort Worth as a testing ground for its autonomous drone Ecosystem, unveiled in March.

The Ecosystem comprises a suite of ground, air, and software products wrapped into a single platform, including software operating systems, automated ground infrastructure, and two next-generation drones.

The drones, which are designed to complete deliveries autonomously in as little as 30 minutes, fly between automated outdoor lockers and customers’ homes while producing about as much noise as a refrigerator at cruising altitude. Each is equipped with a special claw-like grabber that enables airdrops from as high as 120 feet.

Under this framework, DroneUp operators function like air traffic controllers, each assigned to monitor a swath of airspace. Retail associates, meanwhile, need only pack and load orders—the automated lockers and drones handle the rest.

“DroneUp remains committed to a strategy that supports our commercial partners and their customers,” a company spokesperson told FLYING. “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.”

The Ecosystem is designed to extend the range of the company’s operations, which were bolstered in January when the FAA approved it to fly its drones beyond the visual line of sight (BVLOS) of the operator. DroneUp is one of a handful of firms with BVLOS permissions, which can be obtained only via FAA waiver or exemption.

Walmart, meanwhile, recently introduced a drone delivery integration on its digital app, allowing customers to order directly from their phone or computer. The retailer began rolling out the offering in June and will notify customers when they are eligible for delivery through the app. Aiding that initiative is partner Wing, which introduced a suite of application programming interfaces (APIs) that Walmart can use to add drone delivery directly to its e-commerce platform.

In Dallas-Fort Worth, Walmart and its partners’ operations got a lift when the FAA removed BVLOS restrictions for Zipline and Wing. The historic move, announced in July, allows the companies to manage their own airspace with FAA oversight and removes a requirement to station human observers along delivery routes.

With fewer human capital needs and greater freedom to fly BVLOS, the firms should be able to cut costs while expanding their services to more customers. The authorization may have played a role in DroneUp’s decision to focus on the region.

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Israeli company Flytrex on Friday announced the milestone, which it believes makes it the largest commercial provider of food drone delivery in the U.S. The firm said 70 percent of the households in its delivery areas—which comprise a handful of towns in North Carolina and Texas—have used the service to deliver items such as sandwiches, hot wings, and even ice cream.

“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 of Jersey Mike’s Franchise Systems.

Zipline leads the commercial drone industry in deliveries with more than 1 million as of August, but the company primarily delivers medical items such as blood samples and vaccines. Similarly, Wing, the drone delivery arm of Google parent Alphabet, has completed 350,000 deliveries as of January, flying a combination of food and convenience items with partners such as DoorDash and Walmart. But it’s unclear what proportion of those are in the U.S., as the company also has a robust presence in Australia.

Flytrex, by contrast, is focused almost exclusively on food delivery in the U.S. The company’s self-flying drones, which are monitored by FAA-certified operators, can carry up to 5.5 pounds of cargo and fly at around 32 mph, covering a range of 5 miles round trip.

Average delivery time is less than five minutes, with the fastest order being completed in just two minutes. A delivery box is fastened to the drone and lowered to the ground with a tether, protecting delicate items such as eggs. Orders are delivered either to the customer’s house or a public pickup spot.

The FAA in 2021 approved Flytrex’s request to fly over people and deliver to customers’ backyards in North Carolina, allowing it to begin flying commercially. Later that year, around the same time Flytrex launched in Texas, the agency expanded the range of the company’s service to 1 nm, then doubled it in 2022. According to the firm, the second expansion allowed it to reach nearly 100,000 customers.

Last year, Flytrex operating partner Causey Aviation Unmanned became just the fifth company—joining Zipline, Wing, Amazon Prime Air, and UPS Flight Forward—to earn FAA Part 135 permissions for drone delivery, which according to the regulator “is the only path for small drones to carry the property of another for compensation beyond visual line of sight.”

The key phrase there is beyond visual line of sight (or BVLOS as it is known in drone industry parlance), which denotes flights beyond the pilot’s field of view. The FAA has yet to finalize regulations on BVLOS operations, which has forced drone delivery providers to obtain waivers to add the permissions.

These exemptions typically expire after a couple of years. However, a Part 135 holder can have BVLOS permissions added to its certificate, as Zipline and Wing have done, rather than requesting temporary relief.

“Flytrex continuously innovates to overcome delivery challenges, ensuring our drones can handle anything from large and heavy family meals to bad weather and oddly shaped packages,” said Yariv Bash, CEO and cofounder of Flytrex.

According to Flytrex, french fries, chicken nuggets, turkey sandwiches, chicken sandwiches, and burrito bowls have been the company’s most popular restaurant orders, while bananas, limes, and ice cream reign supreme at grocery stores. About 36 percent of all grocery orders included some kind of fresh produce.

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The regulator on Tuesday authorized commercial drone flights without visual observers (VOs) in Dallas-area airspace for two companies: Zipline and Wing, the drone delivery subsidiary of Google parent Alphabet. The firms will manage the airspace themselves with FAA oversight.

“The industry is providing us with a lot of detailed documentation, and we’re providing a lot of oversight,” said Jarrett Larrow, regulatory and policy lead at the FAA’s Uncrewed Aircraft Systems (UAS) Integration Office. “These public-private partnerships are key to safely integrating drones into our National Airspace System.”

Both Zipline and Wing have robust drone delivery services in the Dallas-Fort Worth area in partnership with Walmart. But limiting the firms is a pesky regulation called the beyond visual line of sight (BVLOS) rule, which limits drone operations to within the drone operator’s field of view of the operator.

The FAA is working to release the Normalizing UAS BVLOS Notice of Proposed Rulemaking (NPRM), which would authorize drone operators to fly aircraft where they cannot physically see them. It expects to finalize the measure this year.

But in lieu of a firm rule, the regulator awards BVLOS permissions on a case-by-case basis through waivers. Typically, these exemptions require the companies to maintain VOs along delivery routes to monitor their drones. However, a handful of companies have been able to replace VOs with proprietary or third-party detect and avoid systems or UAS traffic management (UTM) software.

Without these permissions, drone delivery companies are greatly limited in the scope of their operations, which, in order to keep eyes on the aircraft at all times, are often constricted to small areas.

The new FAA authorization seeks to change that, at least in the Dallas area.

Beginning in August, Zipline and Wing will be allowed to deliver packages using UTM technology to keep their drones from colliding. In short, airspace would be managed by private companies with FAA oversight.

“This is the first time the FAA has recognized a third-party to safely manage drone-to-drone interactions,” said Praveen Raju, a program manager in the FAA’s NextGen Office. “As always, safety comes first, and we required exhaustive research and testing before giving the green light.”

Zipline and Wing will use UTM to share flight data and routes with other airspace users, with all flights occurring below 400 feet agl and far away from crewed aircraft. Consensus standards developed by the drone industry and accepted by the FAA describe how the technology can accommodate multiple layers of drone operations, according to the regulator.

The agency also said that Zipline and Wing since 2023 have safely conducted thousands of live drone test flights in shared Dallas-area airspace. Now, commercial flights are expected to provide the FAA with valuable information that could allow it to expand BVLOS operations without special exemptions nationwide.

The regulator on Tuesday said companies and organizations worldwide have shown interest in the project and how they can install their own UTM systems in the U.S.

“UTM is a critical piece for safe, routine, scalable BVLOS operations and to ensure everyone has equitable access to the airspace,” Larrow said. “If service providers and operators are successful in cooperatively sharing the airspace using UTM, it will be a repeatable process nationwide.”

Zipline and Wing were among the first drone delivery firms to obtain Part 135 operator permissions from the FAA and have worked closely with the regulator for years. Should the agency continue to look to the companies to pilot BVLOS operations, it may add permissions to their service areas in other states such as Arkansas, Utah, and Virginia.

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Walmart on Thursday announced that later this month, customers in the fast-growing Dallas-Fort Worth area will be able to order drone delivery directly through the company’s app, with orders arriving in as little as 30 minutes.

Since introducing drone delivery in 2021, Walmart says it has completed more than 30,000 deliveries. As of January, the firm’s DFW service—operated in partnership with industry titans Zipline and Wing, the drone delivery arm of Google parent Alphabet—covers an estimated 1.8 million households.

Not all of these customers will be eligible for drone delivery through the Walmart app, at least not at first.

The retailer described the integration as a phased rollout that will add customers “as more drone delivery sites launch and drone providers receive additional regulatory approvals to fly more goods across greater distances.” Those eligible for delivery, based on the address linked to their account, will be notified through the app.

It’s unclear exactly which regulatory approvals to which Walmart is referring. But it’s worth noting that Zipline, Wing, and another Walmart partner, DroneUp, have all received beyond visual line of sight (BVLOS) exemptions from the FAA.

The approval, awarded on a case-by-case basis, allows drone delivery firms to remove the visual observers (VOs) the agency normally requires to keep an eye on the aircraft. Typically, VOs are replaced by a combination of detect-and-avoid technology and remote pilots. The companies believe this reduced human capital will allow them to fly longer routes.

Walmart first enlisted Wing for its DFW service in August, and the partners now fly out of four Walmart stores located in the suburbs. The drone delivery firm has made a point of building technology that can integrate with its partners’ existing networks.

Physical infrastructure is limited to a fenced-in area that typically takes up a fraction of the store’s parking space. The company is also developing a device called the Autoloader, which enables what is essentially curbside pickup, but using drones. Rather than loading orders into the aircraft themselves, store associates would simply place them on the curb, and the Autoloader would do the rest.

Another recent innovation is a suite of application programming interfaces (APIs) that allow partners to add drone delivery directly to their e-commerce platforms—a tool Walmart will now leverage.

“Our goal is to make drone delivery completely seamless for our partners and their customers,” said Adam Woodworth, CEO of Wing. “When Wing drone delivery is available within the Walmart app later this month, customers will have a wider selection and a better shopping experience than ever before. This is a major step toward making drone delivery a part of everyday life.”

The company also has a drone delivery integration with DoorDash, which in 2022 became the first company to make a service available through a third-party app. The partnership began in Australia, Wing’s largest market. But the firm in March added fast-food delivery from Wendy’s in Christiansburg, Virginia, through the DoorDash app.

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The drone delivery and logistics company announced Thursday that the regulator has approved it for flight beyond the visual line of sight (BVLOS) of the operator, making it one of a handful of companies with a BVLOS waiver for medical deliveries.

“Securing BVLOS approval is a testament to our dedication to safety and innovation,” said DroneUp CEO Tom Walker. “We have some significant technologies coming out of stealth this year, which when combined with BVLOS, will unlock commercial scalability that the industry and our customers have been eagerly awaiting.”

For safety reasons, the FAA requires drone flights to be visually monitored by the operator. However, the agency occasionally awards waivers that enable BVLOS flights with certain restrictions, such as visual observers (VOs) stationed along the route. 

A handful of firms—including another medical drone delivery company, Zipline—advanced past that stage in September, receiving FAA approval to remove VOs as well. DroneUp’s Part 107 waiver requires one or more VOs to monitor for other aircraft in the airspace within 2 sm of the drone. But they won’t need to maintain a visual on the drone itself.

“Our ability to fly BVLOS propels us into the next level of using drone technology, undoubtedly enhancing the efficiency of medical deliveries, ensuring that crucial supplies reach healthcare facilities and patients promptly,” said John Vernon, chief technology officer of DroneUp.

DroneUp said its waiver allows it to immediately begin flying BVLOS for Riverside Health System, a customer with facilities spread throughout Virginia. According to the company, the approval will also clear a path for BVLOS deployments across the country with new and existing customers.

Two other Walmart drone delivery partners—Zipline and Wing, the drone delivery arm of Google parent Alphabet—have similarly expanded their BVLOS permissions as the massive retailer scales its network.

Wing is one of the first drone delivery firms to leverage what the FAA calls a summary grant. Essentially, these are streamlined authorizations for “copycat” companies with similar infrastructure, aircraft, and technology to those who have already been approved. Wing, for example, piggybacked off of Zipline’s BVLOS waiver.

Zipline, UPS Flight Forward, Phoenix Air Unmanned, and uAvionix were the four firms in the FAA’s initial cohort of BVLOS recipients named last year. The agency carefully selected each company in order to open summary grants to a variety of industries. Zipline’s waiver, for example, provides a framework for BVLOS medical drone delivery, while UPS Flight Forward’s does the same for parcel drone delivery.

DroneUp—like Zipline, Wing, and other waiver recipients—says its approval could substantially reduce operational costs by cutting down on required human resources. The authorization could also expand the firm’s operations: Humans will no longer be required to visually observe its drones, creating the potential for longer routes.

Waivers such as DroneUp’s will help the FAA learn more about BVLOS operations as the regulator works to develop a final BVLOS rule. So far, the agency has convened a committee of industry stakeholders and studied its final recommendations. But there is still no firm timeline for an official set of industrywide BVLOS regulations.

In lieu of a final rule, expect the FAA to continue issuing BVLOS waivers and summary grants, which will give certain communities a glimpse of what drone delivery may look like at scale. DroneUp and Walmart currently fly out of 36 hubs in seven states, so perhaps yours will be next.

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China’s DJI, the market leader in consumer drones since 2015, this week announced that its recently unveiled FlyCart 30 model is now available globally. The company kicked off sales in China in August. But the international expansion marks its true entry into the drone delivery space.

Prior to last year, DJI made drones almost exclusively for hobbyists or industrial customers. Most of these are camera drones, equipped with features such as high-definition lenses and video recorders. Others are designed for surveillance and inspection, with thermal or infrared sensors, mapping software, and advanced communications systems.

Despite the Chinese government’s alleged involvement in DJI, the company’s ascent has largely been organic, fueled by its reputation for low cost, high quality products. Its drones have been used to film high-profile TV shows such as Game of Thrones, The Amazing Race, Better Call Saul, and American Ninja Warrior, and have developed a following among American users. They’ve also been discovered on the battlefield in Eastern Europe and the Middle East, often in modified forms.

DJI’s presence in the U.S. has drawn the ire of lawmakers, who have decried the company’s products as “TikTok with wings” and leveled accusations of spying, without concrete evidence. Bans at the federal and state levels have taken aim at it and other Chinese manufacturers. In December, lawmakers successfully included sweeping restrictions in the recently passed defense policy bill.

However, with the exception of a few states, the restrictions only hamper DJI at the federal level. American companies will still be able to purchase the buzzing aircraft, though the manufacturer will compete for business with established U.S. players such as Zipline and Google parent Alphabet’s Wing.

The Specs

DJI says FlyCart 30 can be deployed for a variety of use cases: last-mile delivery, mountain or offshore transportation, emergency rescue, agriculture, construction, surveying, and more. This week’s announcement did not list a price tag, but the model is on sale in China for $17,000.

FlyCart 30 is a multirotor design featuring eight blades connected by four shared axes. Carbon fiber propellers, powered by a pair of built-in-house batteries, provide lift. Measuring 9-by-10-by-3 feet, the model enters the market as one of the largest short-range delivery drones.

Despite its size, the drone tops out at about 45 mph (39 knots). With both batteries installed, it can carry a 30-kilogram (66 pound) payload over a distance of about 8.6 nm, remaining airborne for only 18 minutes. In emergency single-battery mode, the payload rises to 88 pounds but range is cut in half.

However, FlyCart 30 is more durable than the average delivery drone. It has an IP55 rating, meaning it protects against dust and moderate rain, and can fly in winds as fast as 27 mph. The drone can also operate in temperatures as high as 122 degrees or as low as minus-4 degrees Fahrenheit—its batteries heat themselves, maintaining performance even in the freezing cold.

In addition, the drone’s propellers are optimized to fly at up to 19,600 feet agl, or up to 9,800 agl with a 66-pound payload—far higher than the 400-foot altitude occupied by most delivery drones today. This will allow FlyCart 30 to serve China’s mountainous landscape and hard-to-reach locations in other countries.

For beyond visual line of sight (BVLOS) flights, FlyCart 30 can communicate with a remote controller as far as 12 miles away. But its unique Dual Operator mode extends that range by allowing pilots to transfer control of the drone with the push of a button.

During flight, a suite of sensors and visual systems can detect obstacles in multiple directions, in all weather conditions, day or night. A built-in ADS-B receiver alerts crewed aircraft of the drone’s approach. And in case of emergency, an integrated parachute can deploy at low altitude for a soft landing—or the drone can automatically pick an alternate landing site.

FlyCart 30 comes in two configurations, both of which can fold down for transport in a “standard-sized vehicle.” In cargo mode, payloads are placed in a 70-liter case built from material commonly found in the reusable packaging industry. Capable of being installed or removed in under three minutes, the case includes weight and center of gravity sensors to prevent swaying in the air.

Customers can also opt for winch mode, which is ideal for deliveries to inconvenient landing sites. A winch crane can carry up to 88 pounds of cargo, releasing it automatically at the delivery location on a 65-foot cable. Augmented reality projection is used to guide the cable to the landing point.

A FlyCart 30 purchase comes with the aircraft, batteries, charging hub with cables, and DJI’s RC Plus remote controller. In addition, FlyCart can be linked with the company’s DeliveryHub software, which provides operation planning, status monitoring, team resource management, and data collection and analysis.

Viewable on the RC controller is Pilot 2, another software that displays real time information on flight status, cargo status, battery power level, and more. Pilot 2 also alerts operators of potential risks along the flight path and generates alternate landing points in the case of extreme weather or other abnormal conditions. From the controller, users can even view flights live through the drone’s first-person view gimbal camera.

The Outlook

DJI has held the pole position in consumer drones for nearly a decade. The company could continue to bring in billions of dollars in annual revenue by specializing in that area. But the launch of drone delivery signals the firm’s ambitions run deeper.

Rather than selling exclusively to individual hobbyists, DJI can now reach enterprise customers such as retailers or medical organizations. That segment is less susceptible to macroeconomic swings and could help the company stabilize revenue. Skydio, the largest consumer drone company in the U.S., recently shuttered its consumer business entirely, electing instead to pursue enterprise customers.

Working in DJI’s favor is its already established international network of dealers and customers. The firm has become a trusted brand in the consumer drone space, and many companies and organizations—which could become drone delivery customers—are already familiar with DJI systems and interfaces. Some of them already use the company’s other drones.

A potential concern, however, is FlyCart 30’s niche. The drone doesn’t fit neatly into a single category: its limited range and flight time suggest it will hone in on the last mile, but its size and weight make it better suited to deliver heavy cargo rather than food and groceries. Medical payloads could be a good fit (DJI has said as much) but the company would need to compete with Zipline, whose drones can fly 190 miles on a single charge. As of January, Zipline has completed nearly 900,000 deliveries worldwide.

In addition, FlyCart 30’s 143 pound empty weight with both batteries installed would exceed the FAA’s limits for small unmanned aircraft systems (sUAS). To fly in the U.S., DJI would require type certification or an exemption to Section 44807 of Title 49 of U.S. Code. The European Union and New Zealand, two other emerging drone delivery markets, have similar rules.

DJI may be able to overcome those restrictions in other foreign countries, but breaking into the U.S. market could be challenging. For years, American lawmakers have targeted it and other Chinese manufacturers with bans, though these only restrict the technology at the federal level. However, a few states have already shown willingness to pass their own bans.

Further, U.S. lawmakers are pushing legislation that would extend DJI bans to the consumer level, restricting hobbyists and potentially even businesses from flying the drones. But DJI has made one thing very clear: Global scale, not regional, is the objective.

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Walmart—which uses drones from partners such as Zipline and Wing to deliver within minutes to customers nationwide—on Tuesday said it would add 1.8 million households to its Dallas-Fort Worth service area, which will soon cover three-quarters of the area’s population. According to the retailer, no U.S. company has offered drone delivery to as many households in a single market.

The expansion adds stores in 30 towns and municipalities to Walmart’s existing Dallas-Fort Worth service, which itself is part of a network spanning nearly 40 hubs in seven states. 

Zipline and Wing, both of which were recently approved by the FAA to fly their drones beyond the visual line of sight (BVLOS) of a visual observer, will power the deliveries. The companies’ new permissions—part of an FAA push to grow the industry within the U.S.—will allow them to fly further than previously permitted.

“Customers will have access to a broad assortment of items from Walmart available for delivery to their home in just minutes,” said Prathibha Rajashekhar, senior vice president of innovation and automation for Walmart U.S. “Drone delivery is not just a concept of the future, it’s happening now and will soon be a reality for millions of additional Texans.”

Walmart said Dallas-Fort Worth customers can expect the buzzing aircraft to arrive in as little as 10 minutes but no more than 30. Across two years of trials, the retailer has completed more than 20,000 deliveries of items such as snacks, beverages, and cold medicines, including fragile cargo such as eggs. Thousands of items are eligible for drone delivery, but customers must be within 10 miles of a store offering the service.

With the expansion, Dallas-Fort Worth is shaping up to be Walmart’s largest U.S. drone delivery market initially. But the retailer has an additional 4,700 stores located within 10 miles of 90 percent of the U.S. population, adding plenty of room for scale when the time comes.

Zipline, which has worked with Walmart since 2021, is actually the world’s largest drone delivery provider by sheer volume. The company has flown more than 60 million commercial miles, completing 880,000 deliveries in the process. Wing, which ranks second on the list, has made about 350,000 deliveries, according to its website.

Tuesday’s announcement added more food and convenience delivery to Zipline’s profile, which largely comprises medical shipments of blood, vaccines, and other critical cargo. The company said the expansion will allow it to serve 1,000 times as many Walmart customers. For the past two years, it’s delivered from a store in Arkansas, where it says customers now perceive operations as “totally normal.”

By the time Zipline and Walmart begin an operational pilot later this year, the company expects to have completed tens of thousands of trials with Platform 2 (P2), its next-generation delivery system. 

Among other things, P2 will introduce a modified drone, docking, charging, and delivery infrastructure for businesses, and an autonomous droid capable of guiding packages to spaces as small as a patio table. It aims to automate more tasks for customers and enable more precise drop-offs than the company’s existing system, which uses a parachute.

P2 is expected to roll out across the U.S. this year—including in Dallas-Fort Worth following pilot flights with Walmart.

“Autonomous delivery is finally ready for national scale in the U.S.” said Keller Rinaudo Cliffton, co-founder and CEO of Zipline. “Zipline is excited to enable Walmart’s vision of providing customer delivery so fast it feels like teleportation…We’re excited for folks across Dallas-Fort Worth to experience delivery that is seven times as fast, zero emissions, and whisper quiet.”

Like Zipline, Wing, a subsidiary of Google parent Alphabet, has spent the past few years developing its U.S. network with Walmart.

The company has four years of commercial residential service under its belt, including more than a year and a half in DFW. Those operations recently ramped up with deliveries out of two Walmart Supercenters in the suburbs of Frisco and Lewisville, reaching a combined 60,000 households. Wing expects its next expansion to be completed within the year and add “millions” of customers.

In four months of service in Dallas-Fort Worth with Walmart, customers have been clamoring for more, with the top 25 percent of customers ordering twice per week on average, Wing said. Sustainability is a proposition to customers, but so is speed—the company’s drones typically spend just five minutes in the air during a delivery.

Now, range could become a selling point. With its recent FAA approval, Wing can expand its delivery zone beyond the previously enforced 6-mile radius. That means each of its delivery sites will be able to reach more customers.

“Our first few months delivering to Walmart customers have made it clear: Demand for drone delivery is real,” said Wing CEO Adam Woodworth. “The response has been incredible from customers ordering drone delivery from Walmart every day, and it’s a testament to our partnership that we’re now expanding our footprint to bring this innovative delivery option to millions of Texans. If this milestone is any indication, we believe 2024 is the year of drone delivery.”

Zipline and Wing were among the first U.S. firms to receive FAA Part 135 air carrier approval, which allows them to fly drones commercially. Only five companies in the space have those permissions, with the others being Amazon Prime Air, UPS Flight Forward, and Causey Aviation Unmanned, the partner of another Walmart collaborator, Israeli manufacturer Flytrex.

Drone delivery has not quite reached the mass adoption phase. But with Walmart’s massive expansion, that point is beginning to enter focus.

The key to scale will be the finalization of drone delivery regulations, which are still being developed. The FAA, for example, has proposed final rules for BVLOS operations and is coordinating with industry stakeholders to get it on the books. Until that happens, companies will need to rely on waivers like Zipline or Wing’s to start flying.

Those early operations—Walmart’s among them—will help the FAA learn what restrictions may need to be added, removed, or modified. In the meantime, less established competitors will continue to languish under heavy limitations. But the hope is that Walmart, Zipline, and Wing can give the FAA the confidence to open things up for the rest of the industry.

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Zipline on Monday announced plans to significantly expand a medical drone delivery initiative within the U.K.’s National Health Service (NHS) in collaboration with Apian—which, interestingly, partnered with Wing in August. The program will roll out in fall 2024.

“Today, 3,000-pound gas vehicles driven by humans are used to deliver 3-pound packages billions of times per year,” said Keller Rinaudo Cliffton, CEO and co-founder of Zipline. “It’s expensive, slow, and bad for the environment. This decision means that the NHS can start to transition delivery to solutions that are 10 times as fast, less expensive, and zero emission. This service will be delivered at a fraction of the cost of the existing solution and will help drive financial savings to the NHS in the longer term.”

Meanwhile, Wing, a subsidiary of Google parent Alphabet, announced last week that the FAA approved it for beyond visual line of sight (BVLOS) operations without visual observers (VOs), or humans who are stationed below the flight path to keep an eye on the drones. Coincidentally, the approval is a summary grant based on BVLOS exemptions the regulator awarded in September to four firms—including, you guessed it, Zipline.

Zipline Expands to the UK

As of mid-December, Zipline drones have made more than 850,000 deliveries. The company says it completes a trip every 70 seconds. Zipline got its start operating in sub-Saharan Africa before expanding to the U.S. and Japan, picking up customers such as Walmart, Pfizer, and Cleveland Clinic. But it hasn’t yet reached the U.K.

The firm hopes to change that by working with the NHS, Europe’s largest employer, and Apian, a healthcare logistics provider co-founded by a team of former NHS doctors. Apian’s flagship product is an automated, on-demand delivery system that will allow Zipline to easily fulfill orders placed by the NHS.

The new service will provide on-demand drone delivery of prescriptions, wound care, and other medical products to more than 30 hospitals, general practitioners, and care homes across the region.

“I’ve seen firsthand the impact that running out of supplies can have on patient health outcomes,” said Dr. Christopher Law, medical director and co-founder of Apian. “Healthcare should benefit from on-demand delivery, much like consumers now do in their personal lives. Delivering critical products with drones, where and when they’re most needed, will improve supply chain efficiency and give doctors, nurses, and clinicians more time to focus on the most important thing—their patients.”

Zipline will build a hub for the service near the Northumbria Specialist Emergency Care Hospital in Northumberland, England. From there, its autonomous, fixed-wing drones—or Zips, as the company refers to them—will travel up to 130 sm (113 nm) round trip in most weather conditions, floating packages gently to the ground using parachutes.

The Zips use technologies, such as artificial intelligence and an acoustic detect and avoid (DAA) system, to navigate around tall buildings or other aircraft. Each is equipped with redundant safety systems and supervised by trained personnel, who can track flights and intervene when needed.

Zipline intends to centralize inventory of the NHS’ most frequently ordered products: prescription medicines, wound care products, and joint replacement implants, to name a few. These will be flown to Hexham General Hospital, Wansbeck General Hospital, Haltwhistle War Memorial Hospital, and other regional health facilities, within minutes of receiving an order.

Eventually, the partners expect to deliver to “significantly more” health facilities. According to Zipline, the service should help providers move away from last-minute logistics to reduce the number of canceled procedures, which could reduce wait times. It’s expected to launch next year with Northumbria Healthcare NHS Foundation Trust.

“This expansion with Zipline and Apian is an exciting next step as we strive to improve services for the hundreds of thousands of patients we serve,” said James Mackey, CEO of Northumbria Healthcare NHS Foundation Trust. “We believe this innovative technology could be used to improve healthcare outcomes, save money, and eliminate supply chain complexities, and we’re keen to get started.”

Wing—which primarily delivers items such as food, wellness products, and household essentials—is working with Apian to add its own drones to U.K. medical logistics networks. The two plan to deliver pharmacy items, lab samples, and medical devices and supplies in South Dublin, Ireland, as early as this year.

However, the Alphabet subsidiary remains heavily focused on the U.S. market.

Wing Sheds Operational Restrictions

As Zipline adds a previously announced Wing partner, Wing is leveraging a previously announced Zipline approval to bolster its own operations.

The company on Friday said the FAA approved its DAA tech for BVLOS operations without VOs, allowing its drones to use ADS-B instead. The new permissions extend to the airspace above Dallas, where Wing serves customers within a 6-mile radius out of a Walmart Supercenter in the suburb of Frisco.

The firm said the exemption will allow it to remove VOs across Dallas and similar airspace around other major U.S. cities. Following Zipline’s landmark flight last month, Wing will be one of the first drone delivery providers to fly unencumbered by VOs.

“Overall, the FAA’s approval for DAA and recognition of broader strategic deconfliction and [uncrewed traffic management] applications will allow us to operate more efficiently and work toward scaled operations nationwide,” Wing wrote in a blog post. “Starting with communities across the Dallas-Fort Worth area, this action supports our path toward expanding our service across the U.S.”

Wing’s approval is a summary grant, which is essentially a streamlined authorization for a “copycat” company with similar infrastructure, aircraft, and technology to those who have already been approved. In lieu of a final rule on BVLOS operations, the FAA expects to use summary grants to enable early services without overbearing restrictions. Amazon Prime Air, for example, is another recipient.

It’s unclear which of the initial approvals Wing piggybacked off of to obtain its new permissions. But of the four firms to receive exemptions, Zipline’s is the most similar—it too was permitted to replace VOs with its DAA system in a few key markets.

“Our holistic approach to BVLOS flight has been used for commercial deliveries on three continents for several years,” Wing said in its blog post. “It is grounded in avoiding potential conflict before flights ever take off and utilizes in-flight DAA to add an additional layer of safety. Wing has demonstrated the effectiveness and safety of this approach with operational flight data, extensive simulation, and flight test.”

While not as flashy as an international expansion, the removal of VOs could be a big deal for Wing. Without the need to station humans on the ground, the company could greatly expand its delivery range while lowering operational costs. It’s one of the few paths to scale available to industry players, who are just beginning to turn visions of drone-filled skies into reality.

The updates from Wing and Zipline may also have implications for smaller industry players and startups. Having each made several hundred thousand deliveries, the two firms already have a leg up on the competition. Now, the rich are getting richer—and lesser known rivals may need to do even more to catch up.

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The post Drone Delivery Firms Zipline, Wing Prepare to Ramp Up Service appeared first on FLYING Magazine.

Trick question—the FAA requires commercial drone operators to station humans on the ground, called visual observers (VOs), to keep an eye on every flight. So, the aircraft technically aren’t allowed to fly where no one sees them.

That is, unless you have a waiver, like the one drone delivery provider Zipline secured in September. On Friday, Zipline, which primarily delivers medical cargo such as blood, vaccines, and prescriptions in the U.S. and abroad, used that approval to complete what it says was the first beyond visual line of sight (BVLOS) drone flight in the U.S. without VOs.

Human observers were replaced by Zipline’s detect and avoid (DAA) system, which is integrated onboard its drones. The company is a defendant in an ongoing patent infringement lawsuit disputing its use of the tech, filed in August 2022.

The drone delivery giant had already flown BVLOS under prior FAA exemptions. But last week was the first time it—or any other firm in the U.S.—has flown without VOs along the route. There is no video of the flight, since no one was there to see it.

“This is widely considered the holy grail of approvals for scaling drone delivery operations,” said Okeoma Moronu, head of global aviation regulatory affairs at Zipline. “We thank the FAA for their leadership and support throughout this process.”

BVLOS refers to flight beyond the view of the pilot or operator. But in the U.S., the FAA requires VOs to keep an eye on BVLOS drone flights. In other words, these flights are not truly beyond the visual line of sight, and they’re often limited to small service areas as a result. 

Removing the VOs, therefore, can greatly expand the scope of a drone delivery provider’s operations beyond where it’s able to station humans on the ground.

“This exemption from the FAA represents a monumental shift for logistics and equitable access in the U.S.,” Liam O’Connor, chief operating officer of Zipline, said in a blog post. “It builds the foundation for Zipline to scale to deliver food, medicine, consumer goods and other supplies to millions of Americans on demand, and to do so in an environmentally conscious way, resulting in 97 percent fewer emissions per delivery than a gas-powered vehicle.”

Zipline flew its Platform 1 (P1) drone without VOs in Salt Lake City within an hour of receiving the all-clear from the FAA. Ground-based personnel were replaced by onboard perception technology, including the company’s DAA system. DAA functions like a bat’s echolocation, detecting aircraft as far as 2 miles away using acoustics.

“This system has been tested by flying tens of thousands of real-world miles around the globe and through tens of thousands of test encounters with aircraft,” said O’Connor. “It has been designed to operate with the highest level of safety regardless of visual observers along flight routes.”

Zipline’s use of DAA tech is in dispute. In August 2022, technology innovator Scientific Applications and Research Associates (SARA) filed a lawsuit accusing the drone delivery provider of patent infringement.

SARA’s patent, entitled “Acoustic Airspace Collision Detection System,” describes a system that relies on sound to detect nearby aircraft or obstacles, similar to Zipline’s. It was awarded in 2009. The company’s complaint alleges Zipline breached a confidential non-disclosure agreement between the firms and relied on portions of SARA’s patented design in the development of its own DAA system. The case remains active, and Zipline has denied all claims.

“Our revolutionary Detection and Avoidance system uses proprietary technology that more than 100 Zipline engineers independently developed specifically for our aircrafts,” a Zipline spokesperson told FLYING. “This lawsuit entirely lacks merit and we will vigorously defend ourselves.”

A spokesperson for SARA gave its counterpoint statement, telling FLYING the company “will continue to vigorously defend our intellectual property in the legal proceedings now underway.”

Nonetheless, the FAA in September deemed Zipline’s onboard perception system, combined with a hefty helping of operational restrictions, to be just as safe as placing VOs along the company’s routes. Those limitations require Zipline to fly below 400 feet; maintain a list of aircraft components; submit a collision and avoidance plan for all operational locations; and steer its drones well clear of other aircraft.

The regulator’s approval allows Zipline to fly without VOs in Bentonville, Arkansas, and Salt Lake City, where the company is now delivering to customers without the requirement. It plans to expand the approach across its U.S. operations.

“Earlier this year, Zipline became the first company in U.S. history to receive approval from the FAA to leverage an onboard perception system to enable autonomous long-distance drone delivery flights, and [Friday], we made history doing just that,” said Moronu. “This means that Zipline can now go from serving a few thousand homes to serving hundreds of thousands of homes within the U.S.”

What It Means

Calling it the holy grail may sound dramatic, but the removal of VOs should have a significant effect on Zipline’s operations. 

Its drones are capable of flying nearly twice as far as previous approvals permitted. And without the need for VOs, the door is open for the company to operate much longer routes in the U.S., similar to those it flies in Africa. The reduced reliance on human capital also figures to decrease operating costs.

Other companies should be excited about Zipline’s new permissions too.

In lieu of a permanent rule for BVLOS operations, the FAA awards temporary waivers to certain regulations. In September, the agency gave BVLOS permissions to four firms, including Zipline. 

Another recipient, UPS Flight Forward, was permitted to replace VOs on BVLOS routes with remote operations centers, which could be tens or even hundreds of miles away from its actual operations. Phoenix Air Unmanned was also authorized for BVLOS operations without VOs.

However, the permissions are not permanent. The FAA uses waivers to collect data on BVLOS flights, which it hopes will inform its proposed rule on BVLOS regulations, published in the Federal Register in May. The proposal is based on recommendations from the agency’s BVLOS Advisory Rulemaking Committee, a coalition of industry stakeholders tasked with building the framework for a final rule.

The waivers are rare—only a handful of drone operators have obtained them, and nearly all come with significant restrictions. But the FAA expects September’s round of approvals will open things up.

“Our goal is to work towards summary grants as we continue towards rulemaking,” said David Boulter, FAA associate administrator for aviation safety, at the Commercial UAV Expo in Las Vegas that month.

Summary grants are essentially streamlined authorizations for “copycat” companies with similar infrastructure, aircraft, and technology to those who have already been approved. 

The FAA intentionally picked applicants with four different use cases to simplify the waiver process for a wide spectrum of operators. A medical drone delivery provider, for example, could look to Zipline’s approval as a blueprint for the operational requirements needed to secure its own BVLOS permissions.

For now, though, only a handful of operators can routinely fly commercial BVLOS drone flights, and many of them are using waivers that are several years old. 

Out of the five companies that have been awarded FAA standard Part 135 air carrier certificates, Zipline and UPS Flight Forward now have the longest wait before their BVLOS permissions expire. Amazon Prime Air, Alphabet’s Wing, and Flytrex partner Causey Aviation Unmanned are the other three firms authorized for commercial operations under Part 135.

Those companies certainly have a leg up on the competition. But with the removal of VOs, Zipline may have the entire field beat. The company says it makes about 10,000 commercial deliveries per week, equating to about one every 70 seconds. Already, it’s completed more than 815,000 deliveries across seven countries, dwarfing all other competitors—Wing is the next closest with about 350,000 as of October.

“Zipline can now have the kind of positive impact in the U.S. that we’ve had in other countries where we can fly more than 140 miles round trip, beyond the visual line of sight of any observer, all day every day,” said O’Connor. “We have flown over 50 million commercial autonomous miles around the world, carrying everything from blood, pharmaceuticals, vaccines, educational materials, food, and convenience items to tens of millions of people.”

The next step for Zipline will be the introduction of its Platform 2 (P2) system, which it says will make 10-mile deliveries in as little as 10 minutes. P2 will introduce several new pieces of tech, including a delivery droid that will replace P1’s parachute delivery system; easily installable docking and charging stations; and what is essentially a drone drive-thru window.

P2 emphasizes automation, with the only human involvement coming from the employees loading orders and remote pilots overseeing each flight. The system is expected to debut next year, though the company plans to continue P1 operations in certain markets.

It’s unclear, however, whether Zipline’s VO permissions extend beyond P1 operations. The FAA identified the company’s Sparrow drone, or P1 Zip, which it uses to conduct P1 flights, as the approved model. The new system will rely on a slightly different model, the P2 Zip. Zipline did not immediately respond to FLYING‘s request for comment.

As the FAA relaxes VO requirements for other drone operators, Vance Hilderman, CEO of aviation consultancy AFuzion, told FLYING there will likely be new problems for the regulator to solve.

Specifically, urban air mobility (UAM) aircraft, such as electric vertical takeoff and landing (eVTOL) air taxis, will increasingly share the airspace below 500 feet with drones, creating the potential for intersections with drone delivery routes—and collisions. Hilderman suggested the adoption of publicly published UAM routes, which could ensure drones are not in the path of other low-flying aircraft.

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The post Update: Zipline Flies Without Ground Observers Under ‘Holy Grail’ of Drone Approvals appeared first on FLYING Magazine.

Now for this week’s top story:

Canada’s Helijet Makes History with Beta eVTOL Order

What happened? Helijet is one of North America’s oldest and largest helicopter airlines and one of the few that offers scheduled passenger flights. Now, the company is flying into the future with its order for Beta Technologies’ Alia-250 electric vertical takeoff and landing (eVTOL) air taxi—the first such purchase by a Canadian air carrier.

Old dog, new tricks: Helijet has been around since the ’80s, but that won’t stop it from embracing technologies at aviation’s cutting edge. The firm, Beta’s first Canadian customer, expects to be the country’s first air carrier to offer passenger and cargo eVTOL flights. Beta’s Alia will complement—not replace—its fleet of Eurocopter AS350 B2s, Sikorsky S76s, Learjet 31As, and Pilatus PC-12s.

Alia is more limited than these designs, with a 250 nm range and 100 knot cruise speed. However, it produces zero carbon emissions and is expected to be far quieter than those helicopters—and cheaper, Beta and Helijet claim. Helijet will deploy it for passenger, cargo, and medical transport services.

Why Beta? Per Helijet, Beta makes for an ideal partner due to its plan to certify Alia for IFR operations. The eVTOL manufacturer also has a footprint in Canada, having opened an engineering and research and development hub in Montreal in March. It also partnered with Canadian flight simulator provider CAE to train Alia pilots and maintenance technicians.

The partners estimate that eVTOL aircraft could serve 4.2 million passengers in the Greater Vancouver area over the next 15 to 20 years, generating some $1.5 billion ($2.1 million Canadian dollars) in advanced air mobility (AAM) business activity. But they’ll need to wait for Alia’s certification, which is expected around 2026.

Quick quote: “With its mature air travel market demographic and existing challenges for conventional transportation between Vancouver Island and the Lower Mainland, southern British Columbia provides an exciting opportunity to demonstrate the commercial viability and environmental sustainability of AAM in B.C. and Canada,” said JR Hammond, executive director of Canadian Advanced Air Mobility (CAAM), the country’s national AAM consortium.

My take: Could Helijet, one of only two major scheduled passenger helicopter airline services in North America (Blade Urban Air Mobility being the other), become one of the region’s biggest AAM player?

Compared to the massive eVTOL investments made by U.S. airlines such as United and Delta, Canadian air carriers have been slower to warm up to the emerging tech. But Helijet could be set up for early success, with a built-in customer base that already seeks short-hop helicopter flights. Replacing some of those trips with air taxi routes shouldn’t harm demand—especially if Alia can offer a cheaper alternative, as the partners claim.

The new aircraft likely won’t fly until 2026. But when they do, Helijet could provide an important litmus test for AAM operations in Canada.

Deep dive: Canada’s Helijet Makes History with Beta eVTOL Order

In Other News…

SpaceX Starship Nears Return to Flight

What happened? SpaceX’s Starship, the largest and most powerful rocket ever built, has been grounded since its April maiden voyage began and ended in flames. But the FAA in September closed its investigation into the explosion, and the agency this week announced it has now completed its safety review—a key portion of the evaluation of SpaceX’s launch license.

Back in action soon? Having completed the safety review, the FAA is now working with the U.S. Fish and Wildlife Service (USFWS) on an environmental review, the final step needed to modify SpaceX’s vehicle operator license, which may take up to 135 days. When that modification is approved, Starship will be cleared for a second test flight.

However, keep an eye on the lingering lawsuit the FAA and SpaceX are battling. If they lose the case, the FAA will need to produce an environmental impact statement analyzing the effect of Starship launches on local wildlife. That process could delay things for months—or longer.

Deep dive: SpaceX’s Starship—the Most Powerful Rocket in History—Nears Return to Flight

Zipline and Cleveland Clinic Plan Prescription Drone Delivery

What happened? Zipline, the world’s largest drone delivery provider, added its fourth major U.S. healthcare partner this year in Cleveland Clinic. The hospital system will work with Zipline to launch prescription drone delivery in 2025, using its new partner’s Platform 2 (P2) delivery system.

How it’ll work: Zipline’s P2 does a couple cool things—among them is the installation of drone “drive-thru” windows that will allow Cleveland Clinic technicians to load the aircraft without leaving the lab. Rather than drop prescriptions using a parachute, like Zipline’s Platform 1 does, P2 will lower a small, autonomous droid that steers itself to a landing area the size of a patio table.

The collaboration makes sense for Cleveland Clinic, which has been lauded for its supply chain and innovative use of technology. Eventually, the partners plan to ramp up with deliveries of lab samples, prescription meals, and more.

Deep Dive: Zipline and Cleveland Clinic Partner on Prescription Drone Delivery

And a Few More Headlines:

• Ireland’s Manna Drone Delivery launched commercially in the U.S. with Halloween deliveries for trick-or-treaters.

• Virgin Galactic completed its Galactic 05 mission, the company’s sixth successful spaceflight in as many months.

• Chinese eVTOL manufacturer EHang said it expects to begin delivering its type-certified air taxi to customers in the coming months.

• Germany’s Lilium, another eVTOL maker, appointed ArcosJet as its exclusive Lilium Jet dealer in the United Arab Emirates, Israel, and Cyprus.

• Tampa International Airport (KTPA) hosted a test flight of Volocopter’s eVTOL for city and state officials.

On the Horizon…

Kicking off things with a pair of developments FLYING covered this week, the FAA and the U.S. Air Force, as well as the state of Utah, have stepped up their AAM efforts.

Starting with the two government entities: The FAA and AFWERX, the innovation arm of the Air Force, are collaborating to share flight data and testing capabilities for eVTOL and autonomous aircraft. AFWERX has awarded millions of dollars worth of contracts to 36 electric aircraft and technology developers, and its learnings could help the FAA meet its Innovate28 goals. The partnership is expected to benefit U.S.-made aircraft in particular.

Regulators in Utah, meanwhile, released an AAM blueprint resembling a smaller, state-level version of Innovate28. The report provides an interesting look at how individual states may initially tackle these new services. While it’s jampacked with guidance, the researchers’ key takeaway was that Utah already has plenty of assets to work with, and it could see fully operational AAM services by 2028.

We’ve got a couple of Congressional updates this week too. The big one is the introduction of the American Security Drone Act of 2023 to the House Select Committee on the Chinese Communist Party. The bill, initially proposed in February by Senators Mark Warner (D-Va.) and Rick Scott (R-Fla.), would prevent federal departments and agencies from operating, procuring, or using federal funding to purchase drones made in China and Russia.

Meanwhile, Warner and other legislators this week announced that the Senate passed a measure to limit federal funding for drones made in China, Russia, Iran, North Korea, Venezuela, and Cuba—collectively described as the “New Axis of Evil.” The amendment will withhold funding included in the upcoming FAA appropriations package.

Staying at the federal level, the U.S. Departments of Justice and Homeland Security could soon lose the ability to down rogue drones, as their counter-drone authority, established in 2018, is set to expire November 18. Christopher Wray, director of the FBI, said failure to reauthorize the two agencies could leave the U.S. “effectively defenseless” against threats to mass gatherings, airports, and other critical infrastructure.

Speaking of critical infrastructure: In New York’s Capital Region, officials have introduced a bill that would prevent drones from flying near schools and other buildings with that label. The legislation appears after a series of incidents involving drones flying over schools.

Mark Your Calendars

Each week, I’ll be running through a list of upcoming industry events. Here are a few conferences to keep an eye on:

• Dubai Air Show—November 13-17 in Dubai, United Arab Emirates
• Aerospace Tech Week Americas 2023—November 14-15 in Atlanta
• Advanced Air Mobility Summit 2023—November 20-21 in Lisbon, Portugal
• ICAO Drone Enable—December 5-7 in Montreal
• 11th Annual eVTOL Symposium—February 6-8 in Silicon Valley, California
• Drone Show Korea 2024—March 6-8 in Busan, South Korea
• World’s Unmanned Aerial Vehicle Conference—March 17-19 in Jerusalem
• AUVSI Xponential 2024—April 22-25 in San Diego 
• Vertical Flight Society’s Forum 80—May 7-9 in Montreal

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