Uber Invests in Zipline for 1 Million Daily Drone Deliveries by 2029
Uber invests in Zipline to deliver Uber Eats orders by drone in five to 10 minutes, starting this year, targeting 1 million daily deliveries by the end of 2029.
Summary
On Monday, August 17, 2026, Uber announced an undisclosed investment in San Francisco drone delivery startup Zipline and a partnership targeting one million daily deliveries by the end of 2029. The first Zipline deliveries through Uber Eats are due by the end of 2026 in Zipline’s existing markets, followed by expansion into dozens of U.S. cities. Uber expects orders within five to 10 minutes. CEO Dara Khosrowshahi told The Wall Street Journal that quick commerce is becoming a larger market than food delivery and could drive Uber Eats’ next growth phase.
Uber is adding Zipline to a multi-partner model previously used for robotaxis and other autonomous services. It tested drones through the since-sold Uber Elevate, sold Uber Autonomous Technologies Group, returned to delivery drones in late 2025 through a partnership and minor investment in Israeli startup Flytrex, and has committed more than $10 billion to dozens of autonomous vehicle providers. The model faces strain after Uber’s clash with Waymo, whose contracts are expected to end in 2028, while the companies oppose each other over autonomous vehicle regulation. Zipline recently raised $800 million in an extended Series H at a $7.6 billion valuation. Co-founder Keller Cliffton said the Uber partnership aims to make obtaining goods as fast and easy as sending a text.
Positives
- One million daily Zipline deliveries by the end of 2029 would give Uber Eats significant autonomous delivery capacity.
- Five to 10 minute fulfillment could extend Uber Eats beyond restaurant orders into faster quick commerce.
- Dozens of U.S. cities are planned after launches in Zipline’s existing markets by the end of 2026.
- $800 million in extended Series H funding valued Zipline at $7.6 billion.
- More than $10 billion committed to dozens of autonomous vehicle providers supports Uber’s broad partnership strategy.
Risks & concerns
- Uber and Zipline did not disclose the size or terms of Uber’s investment.
- The one million daily delivery objective remains a target that is not due until the end of 2029.
- Initial Uber Eats drone service will be limited to markets where Zipline already operates.
- Waymo and Uber are expected to separate when their contracts expire in 2028 following a clash and regulatory disagreements.
