Uber (UBER) Is Chasing 1 Million Daily Drone Deliveries By 2029

• Uber Technologies (NYSE:UBER) and Zipline announced a partnership to bring drone delivery to Uber Eats customers across the US.
• The companies plan to roll out autonomous drone deliveries for consumers and restaurants on the Uber Eats platform.
• Uber and Zipline are targeting scale of up to one million daily drone delivery orders by 2029.

This move highlights how automation in delivery is spreading fast across logistics, so it can be worth looking more broadly at companies building the hardware and software behind autonomous systems through 37 robotics and automation stocks.

Uber Technologies runs app based services that connect riders, drivers, restaurants, couriers and consumers across multiple regions, so adding Zipline’s autonomous drones simply extends its existing logistics network. For you, this frames the partnership as another way Uber tries to move goods, not just people.

We've flagged 1 risk for Uber Technologies. See which could impact your investment.

What Uber’s Zipline deal confirms about its autonomous delivery Narrative

For Uber Technologies, the Zipline partnership supports the bull case that a partner led approach can extend its hybrid human and autonomous network without Uber owning most of the hardware. It lines up with the Narrative’s focus on autonomous vehicles and electrification as long term profit drivers, while still keeping capital intensity lower than a fully in house build. At the same time, it reinforces a bear side concern from the Narrative around operational complexity, since Uber is adding yet another mode and partner into an already crowded autonomy stack.

If we take a look at the community Narrative for Uber Technologies, we can see how this news fits into the bigger investment story.

The clearest test of this read will be how Uber reports unit economics and service quality for Zipline powered deliveries once the first US markets have been live for a few quarters. This includes how drone orders compare with human couriers on cost per order, delivery time and customer satisfaction.

For the full picture including more risks and rewards, check out the complete Uber Technologies analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com