Wing, the drone delivery service owned by Alphabet, is significantly expanding its partnership with Walmart. The company will roll out its on-demand delivery service to an additional 150 stores across the U.S. over the next year and into 2027. This follows successful pilot programs and expansions in Dallas-Fort Worth and Atlanta, signaling growing consumer demand for this technology.
Rapid Growth Driven by Customer Use
The expansion is being driven by strong customer engagement. Wing reports that its top 25% of users rely on the service three times a week. Popular items ordered via drone include groceries like eggs, ground beef, fresh produce (tomatoes, avocados, limes), and convenience snacks like Takis and Lunchables. This data suggests drone delivery is not just a novelty, but a practical solution for frequent shoppers.
Strategic Expansion and Market Reach
In addition to the current rollout, Wing has announced plans to launch in Houston on January 15th, with further expansions scheduled for Orlando, Tampa, and Charlotte. Once the expansion is complete, Wing will operate from over 270 Walmart locations, reaching approximately 10% of the U.S. population. Key cities included in the expansion are Los Angeles, St. Louis, Cincinnati, and Miami.
Walmart as the Primary Growth Channel
Wing’s commercial strategy heavily relies on its partnership with Walmart. While Wing also collaborates with DoorDash, Walmart remains its primary path to scaling operations. The initial pilot program in 2023 started with two stores in the Dallas area, serving around 60,000 households, and has since grown substantially.
Technological Advancements and Scaling Strategy
Wing is continuously improving its technology, recently completing the first commercial flights with a larger aircraft capable of carrying up to five pounds. The company’s growth strategy involves co-locating services at Walmart stores and integrating into their existing infrastructure. Wing plans to use a clustered rollout approach, similar to the six-store launch in Atlanta, to optimize scaling.
Economic Viability and Future Outlook
While profitability remains undisclosed, Wing’s chief business officer, Heather Rivera, emphasizes the importance of volume for economic success. The company’s focus is on expanding rapidly to as many markets as possible to improve its business model. Rivera’s appointment signals a clear directive: scale the operation aggressively.
“Volume is definitely powering our flywheel,” Rivera stated, underscoring the need for continued expansion to achieve financial sustainability.
This expansion demonstrates Wing’s commitment to commercial viability and positions it as a major player in the growing drone delivery market. The partnership with Walmart provides a crucial foundation for its future growth, as drone delivery becomes an increasingly mainstream service.
