Zipline has raised $1.5 billion at a post-money valuation of $21.5 billion as the drone delivery company moves to build a nationwide delivery network in the United States, expand manufacturing capacity and accelerate hiring.
The funding round was led by Paradigm, WCM Investment Management and Layer Global, with participation from existing and new investors including Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, JPMorgan, ARK Invest and Salesforce Ventures.
The investment gives Zipline additional capital to scale its autonomous delivery operations and expand the infrastructure required to support a broader U.S. network. The company’s expansion plans include increasing manufacturing capacity and recruiting additional employees as it seeks to grow its delivery footprint.
A major part of Zipline’s expansion strategy rests on commercial partnerships with large retailers and delivery platforms. The company said Walmart and Zipline have agreed to launch 300 additional delivery sites under a new multiyear national agreement, significantly expanding their existing relationship.
Uber, which is also an investor in Zipline, is targeting one million drone deliveries a day through the partnership by 2029. The two companies are working to integrate autonomous drone deliveries into Uber Eats, extending the technology into food and retail delivery.
Zipline said it has already delivered more than one million orders in the Dallas-Fort Worth metropolitan area this year. In October, the median delivery took 19 minutes from checkout, compared with more than 30 minutes for traditional ground delivery, according to the company.
The company also reported growing adoption among restaurant partners. Its share of delivery revenue at a group of its longest-standing restaurant partners increased from 10.8% in March to 34.9% in October. The restaurants recorded a 26% increase in delivery gross merchandise value over the period, with Zipline orders accounting for 80% of the growth, the company said.
Founded in 2014, Zipline initially built its business around transporting medical supplies, including blood and essential medicines, to health facilities in Africa. It has since expanded into food, retail and agricultural deliveries, operating across multiple countries in Africa, the United States and Japan.
The company says its autonomous aircraft have flown 150 million commercial miles without a safety incident and that its medical delivery operations help save more than 14,000 lives annually. In Côte d’Ivoire, it is developing a nationwide distribution network expected to serve more than 2,200 health facilities and 12 million people.
The latest financing comes as competition in autonomous delivery intensifies. Amazon is also expanding its drone delivery operations in the United States, while companies across logistics and retail are exploring autonomous aircraft as an alternative to conventional last-mile delivery.
However, broader adoption remains dependent on regulatory approvals, operational safety and public acceptance, including concerns about aircraft noise. Zipline has recently introduced quieter flight technology and a next-generation aircraft designed to carry heavier deliveries over longer distances.
The new capital will support Zipline’s efforts to expand its U.S. manufacturing facilities, increase production and recruit additional employees as it seeks to establish drone delivery as a mainstream part of the country’s retail and logistics infrastructure.
