As a part of a pilot program, Walmart plans to begin using drones to deliver food and household goods, the company said on Wednesday. The online retailer partners Flytrex based in Israel to test drone-powered deliveries starting Wednesday in Fayetteville, North Carolina.
According to the company's website, drones from Flytrex can carry packages of up to 6.5 pounds at the distance of approximately 6 aerial miles.
The reaction of the company's shares was immediate. The shares rose by 2% after the announcement. During Wednesday's trading session, the stock is trading at $141.50, up by 2.20%.
The drones, controlled by the cloud using a smart easy dashboard, will help getting valuable insight and experience for the customer – from picking, packing and delivery.
Today, we’re taking the next step in our exploration of on-demand delivery by announcing a new pilot with Flytrex, an end-to-end drone delivery company. Tom Ward, Senior Vice President, Customer Product, Walmart
The delivery process will look as follows. The package is placed in a drone's delivery box, the drone leaves and goes on the default route to the backyard of the customer. The customer accepts the release of packages upon arrival, and the drone lowers the package on a cord safely until it reaches the ground.
Finally, pilots like this have a greater experience in shaping drone's delivery potential and in adhering to the mission of a foundation, which is to extend Walmart's expertise beyond the current location of the company.