Zipline has raised $1.5 billion at a $21.5 billion post-money valuation to build a nationwide drone delivery network in the US, expanding its manufacturing facilities and ramping up hiring.
The round was led by Paradigm, WCM Investment Management and Layer Global. Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, J.P. Morgan, ARK Invest and Salesforce Ventures also participated.
The raise follows a string of commercial wins. Zipline and Walmart are working together to launch 300 additional sites under a new multi-year national agreement, while Uber is targeting one million deliveries a day with Zipline by 2029. Zipline said “hundreds of businesses” are growing their revenue from Zipline orders, with dozens more joining each week.
Zipline shared results from its longest-tenured restaurant partners. Between March and October, its share of their delivery revenue grew from 10.8% to 34.9%. The restaurants saw a 26% rise in delivery GMV, with 80% of the increase coming from Zipline orders, which the company said did not reduce demand from other platforms.
To date, Zipline has completed more than one million deliveries in the Dallas-Fort Worth metroplex alone this year. In October, its median order arrived 19 minutes after checkout.
“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,” commented Alan Tu, Portfolio Manager at WCM Investment Management.
On the technology side, Zipline recently introduced sound-optimised flight, which it said makes aircraft quieter, faster and more energy efficient. It has also introduced a new generation aircraft designed to fly higher and quieter while carrying heavier orders over longer distances.
Zipline’s medical deliveries, which it said help save more than 14,000 lives a year, continue alongside the US push. In Côte d’Ivoire, it is building a nationwide network expected to serve more than 2,200 health facilities and 12 million people.
This week, Zipline CEO and Co-founder Keller Cliffton discussed the Uber Eats partnership, FAA regulation and how faster deliveries could reshape shopping and dining on The Driverless Digest podcast, which IZON’s founder edits.
