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Uber Partners With Zipline To Expand Drone Delivery On Uber Eats

Uber is adding Zipline’s drones to its Uber Eats network as the companies look to scale drone deliveries across the U.S. The partnership also includes an investment from Uber, although the companies did not disclose its size.

The first Zipline deliveries through Uber Eats are expected by the end of 2026 in markets where the drone company already operates. The partners eventually aim to expand the service to dozens of U.S. cities and reach as many as 1 million drone deliveries per day by the end of 2029.

Uber Expands Its Autonomous Delivery Strategy

The deal is part of Uber’s broader strategy of partnering with multiple companies developing autonomous transportation technologies. Rather than building all of these systems itself, the company has invested in and added outside providers to its platform.

Uber has followed a similar approach with autonomous vehicles, committing billions of dollars to partnerships across the sector. The strategy allows the company to expand into emerging technologies without developing every system internally.

Drone delivery is not new territory for Uber. The company previously explored the technology through its former Uber Elevate division and returned to the market last year through a partnership and investment in Israeli startup Flytrex.

Faster Deliveries, Bigger Market

Uber expects Zipline’s drones to complete some Uber Eats orders within five to 10 minutes. CEO Dara Khosrowshahi said the company sees rapid delivery as a potential driver of the next phase of growth for Eats.

For Zipline, the partnership provides access to Uber’s large customer and delivery network. The San Francisco-based company recently raised $800 million in an extended Series H round, bringing its valuation to $7.6 billion.

The companies now plan to combine Zipline’s drone technology with Uber Eats’ platform as they work toward making autonomous aerial delivery available to millions of customers.

Marvell Shares Fall 8% As AI Growth Outlook Disappoints Investors

Shares of Marvell Technology fell 8% in premarket trading despite a second-quarter revenue beat, after the chipmaker’s updated fiscal 2028 outlook failed to meet elevated investor expectations.

Marvell now expects fiscal 2028 revenue of about $18 billion, representing roughly 50% annual growth and exceeding its previous forecast of $16.5 billion. Second-quarter revenue rose 37% to $2.7 billion, beating the company’s May guidance by $39 million.

AI Demand Drives Revenue Growth

Marvell supplies networking, connectivity and custom chips used in AI data centres, where revenue increased 46% year on year in the latest quarter. CEO Matt Murphy said AI-related bookings remained strong and forecast further revenue growth through the rest of fiscal 2027.

Despite the higher outlook, Marvell provided limited detail on how it would reach the $18 billion target. That added to investor concerns after the company’s recent Google partnership, which could allow Google to purchase up to $12.2 billion in Marvell stock through fiscal 2033.

Under the agreement, Google can buy up to 58.97 million Marvell shares at $206.58 each, subject to performance targets. The partnership covers products supporting Google’s TPU systems, including AI inference chips, storage controllers and network interface controllers.

Investors Had Higher Expectations

Goldman Sachs said investor expectations were already high heading into the results because of strong spending by major customers and the Google agreement. Analysts described the results as an “incremental positive” but maintained a neutral rating, citing Marvell’s higher valuation relative to peers and uncertainty over its ability to add more custom-chip customers.

Marvell shares have gained 184% this year despite the latest decline, reflecting strong investor demand for companies supplying AI infrastructure.

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