Walmart ends contract with DroneUp, no longer an investor

DroneUp, which partnered with Walmart in 2021 for drone deliveries in multiple cities, said its contract with the retailer has ended.

Why it matters: The news comes less than a month after DroneUp received FAA certification to expand its commercial operations.

What they're saying: "We value the lessons learned while working together and will apply those learnings to our operations in the future," the company said in a statement.

• "As of today, our contract and operations together have come to an end."
• Walmart said it's no longer an investor in DroneUp, adding it was "excited about the momentum and positive customer response we've experienced around drone delivery" and would continue tests in the Dallas area.

Catch up quick: Walmart invested in DroneUp in 2021 after running trials with the company on Covid test kit deliveries.

• The companies launched what were billed as large-scale drone deliveries in early 2022.
• In August DroneUp shut down Walmart delivery operations in most markets except Dallas, telling Axios the model wasn't sustainable at the current costs.

What's next: A DroneUp spokesman said the company remains in business with ongoing staff, but declined to comment about layoffs in Dallas.

• Walmart already said earlier this year it was moving forward with drone deliveries with other partners.

Editor's note: This story has been updated with Walmart's statement.