In May 2021, Kroger announced a pilot to deliver groceries by drone with Drone Express, a TELEGRID Technologies subsidiary. The test ran in Centerville, Ohio, near Kroger's Cincinnati headquarters. It never grew into a permanent, wide-ranging operation. Kroger later shifted its drone strategy, launching a separate, larger-scale pilot in 2022 with Zipline in Pea Ridge, Arkansas, signaling that the Drone Express partnership was deprioritized or concluded without expansion.
The Centerville trial was designed to test autonomous drone transport of select grocery items within a specific radius of a Kroger store. Drone Express aimed to operate under FAA Part 135 air carrier certification, which permits commercial operations beyond visual line of sight. The pilot's location, regulatory framework, operational mechanics, strategic rationale, and competitive context explain why it ended as it did.
The Centerville, Ohio Pilot
The pilot launched in Centerville, Ohio, a Dayton suburb roughly 50 miles north of Kroger's corporate headquarters in Cincinnati. Centerville was likely chosen for its proximity to Kroger's operations and airspace amenable to drone testing.
Orders would flow through a dedicated app or website. The drone would fly from the store to the customer's location within a typical drone-pilot radius of 1 to 3 miles.
Part 135 is a significant regulatory hurdle. It remains unclear whether Drone Express secured full Part 135 certification before the pilot concluded.
How the Delivery Service Worked
Payload and winch delivery
Autonomous drones carried payloads up to 5 pounds. Instead of landing, each drone lowered the package by winch, avoiding the need for a landing pad and reducing the risk of tipping or ground obstacles.
What the weight limit meant for orders
The 5-pound ceiling restricted eligible items to small packages: a dozen eggs, a loaf of bread, a small milk container, or a few pieces of fruit. A case of soda or a gallon of milk would not qualify.
Navigation and flight profile
Equipped with cameras and sensors, the drones navigated and avoided obstacles at an altitude around 400 feet. A typical trip took 10 to 20 minutes, depending on distance.
Kroger's Strategic Rationale
Competing on speed
Kroger's drone experiment was part of a broader push into instant fulfillment. Competitors including Amazon Fresh, Walmart, and Instacart were investing heavily in same-day and one-hour options, and Kroger needed to explore new approaches to hold its ground.
Potential cost and reach advantages
Drone transport promised faster, cheaper trips than traditional truck-based methods. A successful pilot could lower per-delivery costs, extend the delivery radius, and act as a differentiator in a crowded market.
One experiment among many
The partnership with Drone Express was one of several last-mile experiments Kroger ran alongside autonomous vehicles and robots. The pilot was a relatively small-scale test, and its failure to scale suggests the approach or business model was not yet ready for broad use.
Drone Express and TELEGRID Technologies
Parent company background
Drone Express was a subsidiary of TELEGRID Technologies, which specialized in telecommunications and drone systems for commercial applications including delivery, inspection, and surveillance.
Purpose-built for grocery
Drone Express was formed specifically to target the grocery market. Its proprietary platform carried payloads up to 5 pounds, operated autonomously, and was designed to withstand rain and wind.
Regulatory progress
TELEGRID Technologies had secured FAA waivers for beyond-visual-line-of-sight operations, a prerequisite for the Kroger pilot. Drone Express aimed for full Part 135 air carrier certification to operate as a commercial delivery service.
The Competive Landscape for Drone Delivery
Retailers in the air
Kroger was not alone in testing drone delivery during 2021. Amazon had been developing Prime Air for years without a wide launch. Walmart partnered with Flytrex and Zipline across several states. Wing, from Google's parent Alphabet, was conducting commercial drone deliveries in Australia and the United States. Uber Eats had experimented with drone delivery through its Elevate initiative.
A crowded, immature field
The market was highly competitive, the technology nascent, and regulatory hurdles substantial. Part 135 air carrier certification was a key milestone few companies had reached. Whether Drone Express obtained it before the Kroger pilot ended is not known.
Why Zipline won the next round
Kroger's subsequent shift to Zipline in 2022 suggests the grocer found Zipline's approach more compelling. Zipline had an established track record: it launched commercial medical deliveries in Rwanda and Ghana and was expanding into the U.S. market.
Why the Pilot Did Not Scale
Likely factors
The Centerville pilot never grew into a permanent, wide-ranging service. Exact reasons remain private, but several factors likely contributed. The technology may have been unreliable for regular use. The regulatory environment may have been too restrictive. The per-trip cost may have been too high to compete with traditional methods. Or Kroger may have simply decided to switch partners.
Zipline's advantages
Kroger's 2022 partnership with Zipline in Pea Ridge, Arkansas, shows the company remained committed to drone delivery but chose a different provider. Zipline's drones carry heavier payloads up to 4 pounds and have a longer range up to 15 miles. Zipline also had a more advanced regulatory position, having obtained Part 135 air carrier certification for its operations.
A cautionary tale
The Drone Express pilot illustrates the challenges of scaling new delivery methods. The path from pilot to wide deployment remains long and uncertain. For now, drone delivery is a niche offering, and it is not clear when it will become a mainstream option for grocery shoppers.
