U.S. autonomous drone delivery and logistics startup Zipline announced Wednesday that it will begin operations in Houston and Phoenix early this year as part of its expansion with $600 million in new investment.
The round, which valued the company at $7.6 billion, will be used to expand into at least four U.S. states in 2026, the company said. Several existing and new investors participated in the funding round, including Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global.
Founded in 2014, Zipline has developed a unique drone delivery ecosystem that includes logistics software, takeoff and landing systems, and aircraft. The company began commercial operations in Rwanda in 2016 using autonomous drones to deliver blood. Zipline's drones currently deliver food, retail, produce, and health products in five African countries, several U.S. cities, and Japan.
Last year, Zipline launched a delivery service in the U.S. that allows customers to order food and retail items through an app. The delivery service uses Zipline's Platform 2 drones, which can carry up to 8 pounds and are designed to travel to customers within a 10-mile radius. The company's large Platform 1 drones are used by businesses, corporations, and governments for long-distance deliveries that can cover 120 miles round trip. According to Zipline, the P2 platform launched in Pea Ridge, Arkansas, and in the Dallas-Fort Worth Metroplex in partnership with Walmart and more than a dozen restaurant brands.
They also announced plans to release it in Seattle. Other commercial partners include Panera, Chipotle, Crumbl, Blaze Pizza, Wendy's and Little Caesars.
Geographical expansion in the United States has increased the number of zipline deliveries. In 2024, the company completed 1 million drone deliveries to customers. Zipline announced this week that it has surpassed 2 million deliveries. The company also said deliveries in the U.S. have increased about 15% week over week over the past seven months.
Co-founder and CEO Keller Clifton sees 2026 as the company's breakthrough year.
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“Automated logistics has matured for more than a decade, but last year it became clear that as deliveries become faster, cleaner, safer and cheaper, demand is not just high, it is growing exponentially,” Kufton said in a statement. “In 2026, automated logistics will become a daily necessity for people in multiple states across the U.S. That transformation will start in Houston and my hometown of Phoenix, with service launching earlier this year and then expanding to more locations across the country throughout the year.”
Ziplines aren't the only industry in the nascent stages of drone delivery. Other competitors include Flytrex, DroneUp, Amazon Prime Air, and Wing, an Alphabet-owned subsidiary that also partners with Walmart. Wing announced plans to expand to 150 additional Walmart stores by 2027.