Walmart Stock (WMT) Takes Wing as it Expands Drone Deliveries

Shares in retail giant Walmart (WMT) were higher today as it takes flight with on-demand drone delivery company Wing.

Five New Cities

Walmart and Wing, which is owned by Alphabet (GOOGL), have set out plans to roll out drone delivery to over 100 of the retailer’s stores in five new cities. These are in Atlanta, Charlotte, Houston, Orlando, and Tampa.

Wing first partnered with Walmart in 2023, launching a pilot program to test drone delivery at two stores in the Dallas metro area that reached about 60,000 homes. It has since grown to 18 Walmart Supercenters in Dallas-Fort Worth.

Greg Cathey, senior vice president of Walmart’s U.S. Transformation and Innovation department, said drone delivery would remain a key part of its “commitment to redefining retail.” He said: “We’re pushing the boundaries of convenience to better serve our customers, making shopping faster and easier than ever before.”

Drones Demand

Wing chief executive Adam Woodworth told TechCrunch that it had gone beyond its pilot and trial phase and was now focused on scaling up the business.

Woodworth did not reveal to the publication whether Wing was profitable yet or when that might happen.

Wing is also swooping in on the restaurant food delivery sector through its DoorDash (DASH) partnership. They paired up in 2022 to launch drone deliveries in Australia, with the collaboration now extending to Dallas and Charlotte.

Walmart is rapidly embracing new technology. It also recently got together with Zipline, a drone service startup, to augment its delivery operations again in that drone capital Dallas. The Zipline drones, known as P2 Zips, are currently being used to ferry orders from Walmart to houses in Mesquite, Texas.

Is WMT a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.71 implying an 11.99% upside.

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