Walmart Marks Millionth Drone Drop-Off Amid Increased Delivery Focus

Walmart says its drones have now made more than 1 million deliveries.

“What started as a pilot just a few years ago has officially taken off, giving customers a faster, easier way to get the everyday items they need, right when they need them,” the retail giant said in its announcement last week.

Of those million-plus deliveries, 40% happened during Walmart’s current quarter, the announcement added. The average drone delivery time was 23 minutes, while the shortest trip took four minutes and 44 seconds.

“The one millionth delivery comes as Walmart continues to rapidly expand drone capabilities across 66 stores in four states serving five metro markets,” Walmart said.

“Since launch we’ve seen customers evolve from trying it to experience the novelty of the service for items like bananas or snack food, to now turning to it frequently to get items delivered really fast, when they need them most.”

In announcing its earnings last month, Walmart made a connection between its delivery capabilities and the continued expansion of its eCommerce business.

The earnings showed the retailer’s enterprise eCommerce sales climbing 26% during the quarter, making up nearly a quarter of total net sales worldwide. Walmart U.S. saw its ninth quarter in a row of digital growth north of 20%, continuing a trend that company executives repeatedly tied back to speed and convenience.

“Delivery remained a central driver of that convenience,” PYMNTS wrote. “Within Walmart U.S., delivery volume increased 45%, and more than 36% of store-fulfilled deliveries arrived in under three hours.”

During analyst questioning, executives repeatedly came back to the idea that quicker fulfillment increases shopping frequency and widens the range of purchases customers make.

CFO John David Rainey said Walmart can now reach roughly 60% of households in the U.S. in 30 minutes at the most. He connected those capabilities to more robust engagement and participation in membership programs, which are becoming a larger part of the business.

Walmart last week debuted its Prepaid Consolidation program, a logistics strategy aimed at simplifying the way suppliers move products into the company’s distribution network.

“We’re focused on making our supply chain simpler, faster and more efficient for suppliers, while also keeping products in stock for our customers,” Mike Gray, senior vice president of Supply Chain at Walmart U.S., said in a news release.

“By strengthening our first-mile capabilities, we’re reducing complexity and keeping goods moving, so we can deliver even more value every day.”