• Market Crumbs

Walmart Turns To Drones


Image via Kevin Chow on Unsplash

Amazon and Walmart have been fighting each other for years to become the preferred shopping destination of millions. With the coronavirus pandemic fueling e-commerce spending and speeding up the e-commerce penetration of total retail spend, the two companies continue to innovate at a rapid pace.


The latest battle between the two is shaping up to be deliveries using drones. While Amazon won approval from the U.S. Federal Aviation Administration in August to operate its fleet of Prime Air delivery drones, Walmart is signaling through a handful of partnerships that it wants to give drones a shot as well.

Over the last month, Walmart has struck three separate deals with drone operators to test delivering various items.


Walmart announced a pilot program last month with Flytrex, an end-to-end drone delivery company, to deliver select grocery and household essential items to customers in Fayetteville, North Carolina.


Walmart is also teaming up with Quest Diagnostics and drone services provider DroneUp to test delivering coronavirus tests to people's homes using drones. Customers would administer the nasal swab test and then send it back to Quest Diagnostics for testing. A trial is underway in north Las Vegas, while a trial in Cheektowaga, New York is expected to begin this month.


"There's a lot we can learn from our drone delivery pilots to help determine what roles drones can play in pandemic response, health care delivery and retail," Walmart said. "We hope drone delivery of self-collection kits will shape contactless testing capabilities on a larger scale and continue to bolster the innovative ways Walmart plans to use drone delivery in the future."


Walmart also struck a partnership with drone delivery company Zipline to deliver select health and wellness products in an attempt to go after the quickly-growing prescription management space. Trials using Zipline's technology will take place near Walmart's headquarters in Arkansas and are expected to begin early next year.


"We’ll never stop looking into and learning about what the next best technology is and how we can use it to better serve our customers now and into the future," Walmart senior vice president of customer product Tom Ward said.


While Amazon began testing deliveries with drones in 2013, it's not surprising to see Walmart decide to partner with drone operators instead of running its own fleet. With Walmart's deep pockets, it wouldn't be surprising to see Walmart acquire the companies if these trials prove to be successful.

Leftover Crumbs

  • Powell enjoyed his weekends in August. Federal Reserve Chairman Jerome Powell didn't work during a weekend in August for the first time since the coronavirus began, according to his calendar released on Friday. Powell held five calls with Treasury Secretary Steven Mnuchin, marking the fewest amount since the crisis began. Powell's schedule also showed he spoke with lawmakers eight times in August compared to five times in July.

  • Bristol-Myers acquires MyoKardia. Bristol-Myers Squibb is acquiring MyoKardia for about $13 billion to diversify from cancer treatments by adding the company's experimental heart disease therapy. Shares of MyoKardia soared more than 50% on the news as the deal values the company at about $225 per share. Bristol-Myers said the deal gives the company a "medium- and long-term growth driver" and will add to earnings starting in 2023.

  • Airbnb prepares for blockbuster IPO. Airbnb is reportedly looking to raise $3 billion in its IPO, according to sources. The IPO, which will be among the largest U.S. listings of the year, is reportedly set to take place in December. Airbnb could seek a valuation of more than $30 billion, which would mark a remarkable increase from its previous valuation of $18 billion in April when it raised $2 billion.

  • Morgan Stanley closes E*Trade deal. Morgan Stanley has closed its $13 billion all-stock acquisition of E*Trade that was announced in February. "E*Trade has built a best-in-class, direct-to-consumer digital channel and a strong brand over the past 38 years," Morgan Stanley CEO James Gorman said. "The addition of their premier offering will provide enhanced capabilities to all our clients and financial advisors."

  • Tech CEOs set to testify. Facebook CEO Mark Zuckerberg, Google and Alphabet CEO Sundar Pichai and Twitter CEO Jack Dorsey will testify before the Senate Commerce Committee on October 28 regarding Section 230 of the Communications Decency Act. The rule shields tech giants from liability over users' content on their online services while enabling them to moderate it.