Uber Inks Partnership With Flytrex For Drone Delivery In US: Retail Sees Stock ‘Going Higher For Longer’

Ride-hailing platform Uber Technologies (UBER) announced on Thursday that it has entered into a strategic partnership with drone delivery provider Flytrex Inc.

Drone delivery services are expected to begin with Uber Eats pilot markets in the U.S. by the end of the year, the company said. The partnership is part of the company’s efforts to build a delivery network that extends beyond traditional modes of transport, such as cars and bikes. The company already has sidewalk robots in its network and is seeking to expand its network further with autonomous aerial delivery.

Shares of Uber traded 2% higher at the time of writing. On Stocktwits, retail sentiment around UBER fell from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.

A Stocktwits user expressed optimism on the stock, saying it’s “going higher for longer.”

Another user believes the partnership is a “great move.”

Uber noted on Thursday that Flytrex is one of only four drone delivery providers authorized by the Federal Aviation Administration (FAA) for beyond visual line of sight operations. The firm highlighted that it is making its first investment in drone technology with Flytrex to accelerate the development and deployment of drone delivery technology.

According to Uber, Flytrex has completed over 200,000 deliveries across the U.S. Flytrex currently operates in North Carolina, Texas, and other approved locations. The company typically serves customers within a two- to three-mile radius of its fulfillment centers, and its drones can reach speeds of up to 32 km/h.

Uber stock is up 57% this year and approximately 29% over the past 12 months.

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