Zipline, a U.S. autonomous drone delivery and logistics startup, announced on Wednesday that it will launch operations in Houston and Phoenix early this year. This expansion is fueled by a new investment round of six hundred million dollars, which values the company at seven point six billion dollars. The funding round included participation from several existing and new investors such as Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global.
Founded in 2014, Zipline developed its own complete drone delivery ecosystem, encompassing the logistics software, launch and landing systems, and the aircraft themselves. The company began its commercial operations in 2016 by delivering blood in Rwanda. Today, Zipline’s drones deliver food, retail goods, agricultural supplies, and health products across five African countries, several U.S. cities, and Japan.
Last year, Zipline introduced a home delivery service in the United States. This service allows customers to order food and retail goods through an app. The home deliveries utilize Zipline’s Platform 2 drones, which are designed to carry up to eight pounds and serve customers within a ten-mile radius. The company’s larger Platform 1 drones are used for long-range deliveries for enterprise, business, and government clients, capable of covering one hundred and twenty miles roundtrip.
The P2 platform initially launched in Pea Ridge, Arkansas and the Dallas-Fort Worth Metroplex in partnership with Walmart and over a dozen restaurant brands. Zipline has also announced plans to launch services in Seattle. Other commercial partners include Panera, Chipotle, Crumbl, Blaze Pizza, Wendy’s, and Little Caesars.
This geographic expansion in the United States has significantly increased Zipline’s delivery volume. The company completed one million drone deliveries to customers in 2024 and announced this week that it has now surpassed two million deliveries. Zipline also reported that its U.S. deliveries have grown by approximately fifteen percent week over week for the past seven months.
Co-founder and CEO Keller Cliffton views 2026 as the company’s breakout year. In a statement, Cliffton said that autonomous logistics has been maturing for over a decade and that demand grows exponentially when deliveries are faster, cleaner, safer, and cheaper. He stated that in 2026, autonomous logistics will become an everyday staple for people across several U.S. states, beginning with Houston and Phoenix and expanding to more places throughout the year.
Zipline operates in a competitive nascent industry of drone delivery. Its competitors include Flytrex, DroneUp, Amazon Prime Air, and Wing, an Alphabet-owned subsidiary that has also partnered with Walmart on expansion plans.