Walmart (WMT.US) is aggressively expanding the reach of its drone delivery service through a deepened partnership with Wing, a subsidiary of Alphabet (GOOGL.US), with plans to extend the service to tens of millions of consumers across the United States. The retail giant intends to add drone delivery capabilities at over 150 additional stores nationwide within the next year, and by the end of 2027, the total number of its drone delivery hubs is expected to surpass 270.

This expansion will significantly broaden the service's footprint, which was previously limited to small-scale pilot programs in select markets like Dallas-Fort Worth and Atlanta. Wing anticipates that this operational scale-up will benefit more than 40 million Walmart customers, a substantial increase from the current coverage of just a few million.

Walmart has indicated that drone delivery is primarily targeted for small, urgent items such as groceries and medications, promising delivery within minutes of an order being placed. In recent years, numerous retailers and tech companies, including Amazon (AMZN.US) and DoorDash (DASH.US), have experimented with drone delivery, yet the pace of adoption has been inconsistent.

Regulatory constraints, weather limitations, and persistent concerns regarding safety, noise, and privacy have collectively hindered the widespread implementation of drone delivery services. However, a turning point may be on the horizon, as draft aviation regulations released in the U.S. last year are expected to ease restrictions on drones flying "beyond the visual line of sight" of an operator.

Industry experts point out that this potential policy shift could significantly enhance the economic viability and scalability of drone delivery. Walmart first launched its drone delivery service in Texas in 2022 and has since gradually expanded it to several other regions. Markets slated for new service next year include Los Angeles, Houston, Cincinnati, St. Louis, and multiple cities in Florida.

Wing's drones are capable of carrying packages weighing up to 5 pounds over distances of several miles, lowering items onto customers' properties via a tether. Regarding the fee structure, Walmart+ members are eligible for free drone delivery, while non-members are required to pay a delivery fee per order.