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Zipline Secures $600M to Expand U.S. Drone Delivery to Houston, Phoenix and Beyond

U.S.-based autonomous drone delivery and logistics startup Zipline announced it will launch operations in Houston and Phoenix early this year, marking a major step in its expansion across the United States. This growth will be fueled by a $600 million funding round that values the company at $7.6 billion. The investment was led by existing and new investors, including Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global. Founded in 2014, Zipline built its own end-to-end drone delivery ecosystem, including proprietary drones, launch and landing systems, and logistics software. The company launched its first commercial service in 2016, delivering blood supplies in Rwanda. Today, it operates in five African countries, several U.S. cities, and Japan, providing deliveries for healthcare, food, retail, and agricultural products. In 2024, Zipline launched a consumer home delivery service in the U.S., allowing customers to order food and retail goods through a mobile app. The service uses Zipline’s Platform 2 drones, capable of carrying up to eight pounds and flying up to 10 miles from the launch site. These drones are already in use in Pea Ridge, Arkansas, and the Dallas-Fort Worth metroplex, serving over a dozen restaurant brands, including Panera, Chipotle, Crumbl, Blaze Pizza, Wendy’s, and Little Caesars. The company has also announced plans to expand into Seattle. Zipline’s larger Platform 1 drones are designed for long-range, high-volume deliveries for enterprise, government, and business clients, with a roundtrip range of up to 120 miles. The company has seen rapid growth in U.S. operations, completing one million drone deliveries in 2024 and surpassing two million deliveries this week. U.S. delivery volume has grown by approximately 15% week over week for the past seven months. Co-founder and CEO Keller Cliffton called 2026 the company’s breakout year. “Autonomous logistics has been maturing for more than a decade, and the last year has made it unmistakably clear that when deliveries are faster, cleaner, safer, and cheaper, demand isn’t just high—it grows exponentially,” he said. “In 2026, autonomous logistics will become an everyday staple for people across several states in the U.S. That transformation starts with Houston and my home town of Phoenix, which we’ll begin serving early this year, and then expand to even more places across the country throughout the year.” Zipline is not alone in the emerging drone delivery space. Competitors include Flytrex, DroneUp, Amazon Prime Air, and Wing, Alphabet’s drone delivery subsidiary. Wing recently announced plans to expand its service to another 150 Walmart stores by 2027.

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Zipline Secures $600M to Expand U.S. Drone Delivery to Houston, Phoenix and Beyond | Trending Stories | HyperAI