Delivery Wars (via Drone) Quick Update

Posted on by John W. Anderson in RVA Grocery and Delivery Wars

It did not take long for Walmart to make another move in the Delivery Wars arena! The Associated Press reported today that Walmart is stepping into delivery via drones, most likely to keep pace with Amazon. In what appears to be an exploratory or experimental phase, Walmart has entered into agreements with Flytrex, described as a startup, to deliver groceries and household goods to customers from Walmart stores in North Carolina, and with Zipline to deliver health and wellness products to locations close the Walmart headquarters in northwest Arkansas. The Zipline delivery program is scheduled to go into effect early in 2021. Zipline has been in existence since 2014 and has experience in drone delivery of medical supplies in countries overseas.

Amazon.com received FAA approval to deliver packages via drone recently, but the delivery service has not started, as Amazon is still testing the drones and will not say when the company will start delivery to customers via drones on a large scale. The article notes that both UPS and a Google-owned company have received regulatory approval for drone delivery.

The competition does not take a break! Stay tuned!

About the Author

John W. Anderson is a commercial real estate attorney who represents Virginia businesses and individuals. He assists his clients with a variety of commercial real estate matters and transactions (lender counsel, purchases, sales, leasing, tax-deferred exchanges, and development, as well as providing counsel regarding compliance with access provisions of the Americans with Disabilities Act), tax-deferred exchanges, and general corporate and business advice, including entity formation.

Spotts Fain publications are provided as an educational service and are not meant to be and should not be construed as legal advice. Readers with particular needs on specific issues should retain the services of competent counsel.