Zipline plans to expand its drone deliveries with $600 million in new funding

US drone delivery and logistics startup Zipline announced on Wednesday that it will begin operations in Houston and Phoenix early this year, as part of an expansion that will be propelled by $600 million in new investments.

The round, which values ​​the company at $7.6 billion, will be used to expand into at least four US 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 its own drone delivery ecosystem, including logistics software, launch and landing systems, and aircraft. The company made its commercial debut in 2016 using its self-driving drones to deliver blood in Rwanda. Today, Zipline drones deliver food, retail, agriculture and health products in five African countries and several cities in the United States and Japan.

Last year, Zipline launched a home delivery service in the US that allows customers to order food and retail goods via an app. The home delivery service uses Zipline’s Platform 2 drones, which are designed to carry up to eight pounds and travel to customers within a 10-mile radius. Its larger Platform 1 aircraft are used for long-range enterprise, corporate and government deliveries that can cover a distance of 120 miles round-trip. The P2 platform has started in Pea Ridge, Arkansas, and the Dallas-Fort Worth Metroplex with Walmart and more than a dozen restaurant brands, according to Zipline.

It also announced plans to launch in Seattle. Other brand partners include Panera, Chipotle, Crumble, Blaze Pizza, Wendy’s and Little Caesars.

This geographic expansion into the United States has increased Zipline’s delivery numbers. In 2024, the company completed the delivery of one million drones to customers; Zipline said this week it had surpassed 2 million deliveries. The company also said its U.S. shipments have grown about 15% weekly over the past seven months.

Co-founder and CEO Kyler Clifton views 2026 as a breakout year for the company.

“Independent logistics has been maturing for more than a decade, and the past year has made unequivocally clear that when deliveries are faster, cleaner, safer and cheaper, demand is not only high, it is growing exponentially,” Clifton said in a statement. “In 2026, autonomous logistics will become an everyday staple for people across multiple states in the U.S. This transformation starts in Houston and my hometown of Phoenix, which we will begin offering early this year, and then expand to more places across the country throughout the year.”

Zipline isn’t alone in the emerging industry of drone delivery. Other competitors include Flytrex, DroneUp, Amazon Prime Air, and Wing, the Alphabet-owned subsidiary that has also partnered with Walmart. Wing announced plans to expand to 150 more Walmart stores through 2027.