Drone delivery firm Zipline has raised another $200 million in funding, all told bringing its most recent Series H round to a whopping $800 million. The latest investment values the US-based logistics company at $7.6 billion, demonstrating continued interest in autonomous delivery services.
The funding round was led by Fidelity with participation from Baillie Gifford, Valor Equity Partners, Tiger Global and Paradigm. It plans to spend the new money on expanding its delivery network throughout the United States. It plans to operate in at least four states this year alone and lists Houston, Phoenix and Seattle among its next locations.
Zipline says the demand for its service has grown in recent months. Customers have been ordering more frequently, while the value of individual orders has also increased. To help meet the demand, it’s also working to bring on more brands and products to its delivery platform.
Founded in 2014 and headed up by Keller Rinaudo Cliffton, Zipline initially delivered blood and medical supplies around Rwanda. Later, it grew into other countries and started handling deliveries related to food, retail and farm.
Zipline now serves hospitals and other businesses, as well as distribution centers, in the United States, parts of Africa and Japan. It has two main drone systems in operation. The newer Platform 2 is designed for last-mile at-home delivery and can carry packages weighing up to eight pounds within roughly 10 miles. This service is already available in parts of Arkansas and the Dallas-Fort Worth area through deals with Walmart and restaurant chains.
On longer routes, the company utilizes Platform 1 drones, which can cover up to 120 miles in a single trip. These are primarily used by governments, healthcare organizations and big businesses. The company’s expansion reflects a wider shift toward automation in logistics.
The company has completed millions of deliveries to date and registered a high number of miles flown autonomously. Zipline believes it can make drone delivery a quicker and more efficient alternative to using gas-powered vehicles in cities or remote areas.
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