This article first appeared on GuruFocus .
Shares of ride-hailing and delivery company Uber Technologies Inc. ( UBER , Financials ) rose over 2% in premarket trading after the firm announced a partnership with Zipline to bring autonomous drone delivery to Uber Eats customers.Eventually, Uber Eats users will be able to receive their orders thru Zipline's drone network, the companies said. Uber is also investing strategically in Zipline as the companies work to scale up the service.The long-term goal is ambitious: one million autonomous deliveries per day by the end of 2029. Zipline is already flying on four continents and makes a delivery every 20 seconds, the companies said.The first Uber and Zipline deliveries are due later this year. "For investors, the deal gives Uber another way to automate delivery without having to build out the entire technology stack itself.That might matter if drones reduce delivery times and labor costs for small orders. The bigger question is whether regulators, local infrastructure and customer adoption can support drone delivery at the scale Uber and Zipline are shooting for.
