US-based drone delivery company Zipline has raised $1.5 billion in a new funding round at a post-money valuation of $21.5 billion.
The round was led by Paradigm, WCM Investment Management and Layer Global, with participation from Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, J.P. Morgan, ARK Invest and Salesforce Ventures.
The company will use the fresh capital to expand its US manufacturing facilities, increase hiring and build a nationwide autonomous drone delivery network.
Zipline is seeing growing demand for drone deliveries as businesses look for faster and more cost-effective alternatives to traditional delivery services. Traffic congestion, ageing road infrastructure and rising transportation costs are creating challenges for ground-based delivery.
The company is also expanding its partnerships with major businesses. Walmart and Zipline are working on a new multi-year agreement to launch 300 additional delivery sites across the US. Meanwhile, Uber aims to reach one million daily deliveries through its partnership with Zipline by 2029.
“Zipline is now one of the largest autonomous robotics companies in the world — operating with scale, safety, and a magical user experience for consumers and merchants,” said Matt Huang, Co-Founder and Managing Partner of Paradigm. “It’s no wonder that some of the largest merchants in the world are partnering with Zipline to use their delivery network.”
“Zipline has built a team and culture that has been developing cutting-edge drone delivery capabilities for over 10 years, and the market is now recognizing how transformational its technology is. Within e-commerce and food delivery, Zipline represents a generational improvement in user experience and delight,” said Alan Tu, Portfolio Manager at WCM Investment Management
“Zipline has already brought the future of delivery to the communities it serves. Now, the opportunity is to reach millions more,” said Anton Levy, Founder and Managing Partner of Layer Global. “With partners like Uber and Walmart and a repeatable model for entering new markets, Zipline is well positioned to make drone delivery a mainstream part of everyday life.”
Zipline’s delivery network is also helping restaurants and small businesses reach more customers. The company reported that its share of delivery revenue among a group of long-term restaurant partners increased from 10.8% in March to 34.9% in October. These restaurants also recorded a 26% increase in delivery gross merchandise value (GMV), with 80% of that growth coming from Zipline orders.
The company is also focusing on improving delivery speed and aircraft technology. In October, the median delivery time was 19 minutes after checkout, compared with more than 30 minutes for traditional delivery services. Its next-generation aircraft are designed to fly more quietly, carry heavier orders and cover longer distances.
Founded around a decade ago, Zipline has become one of the world’s largest autonomous delivery companies. It reports more than 150 million commercial autonomous miles flown without a safety incident. Its medical delivery network also supports healthcare facilities across multiple countries, helping save more than 14,000 lives each year.
In Côte d’Ivoire, the company is developing a nationwide delivery network expected to serve more than 2,200 healthcare facilities and 12 million people.
With its latest funding, Zipline plans to scale its drone delivery operations and expand access to faster deliveries for businesses, customers and healthcare providers.
