Uber Technologies, Inc. (UBER.US) invests in Flytrex to return to the drone delivery field.

Uber Technologies, Inc. (UBER.US) will partner with drone delivery company Flytrex, marking the ride-sharing giant's reentry into the drone delivery field. According to a statement released on Thursday, Flytrex's autonomous drone delivery system will be tested in Uber Eats pilot markets by the end of this year. Uber Technologies, Inc. will also make a financial investment in Flytrex "to accelerate the development and promotion of this technology." Uber Technologies, Inc. declined to disclose the amount of the investment, stating that it was not significant. While drone delivery is gradually becoming a reality in the United States, there are still limitations in terms of scale. The Federal Aviation Administration (FAA) strictly regulates airspace, and Flytrex is one of the few companies permitted to operate beyond line of sight drones. Amazon.com, Inc. (AMZN.US) has received FAA approval, but its drone project suffered setbacks due to crashes in the rain. Established in 2013, Flytrex initially focused on manufacturing drones but later shifted to delivery services. Today, its clients include Walmart Inc. (WMT.US) and Uber Technologies, Inc.'s competitor DoorDash (DASH.US). Uber Technologies, Inc. previously tested drone delivery of McDonald's Corporation food in San Diego in 2019 through its internal air transportation department, Uber Elevate. However, the project faced delays due to regulatory issues, and Uber Technologies, Inc. gradually reduced costly projects and sold that department during the pandemic. This partnership signifies Uber Technologies, Inc.'s return to more ambitious fields, including autonomous ride services, curb-side delivery with Siasun Robot & Automation, and helicopter transportation projects. However, Uber Technologies, Inc.'s strategy relies on strategic partnerships and investments rather than developing technology and hardware internally. Since June, competitor DoorDash has been collaborating with Flytrex to launch drone delivery services in parts of the Dallas-Fort Worth area. DoorDash also partners with Alphabet's Wing to test and offer drone delivery services in select areas of North Carolina and Virginia.