UPS, CVS to Launch Residential Drone-Delivery Service to Fla. Retirement Community

By Michael Dabaie

United Parcel Service Inc. said its UPS Flight Forward subsidiary will use drones to deliver prescription medicines from a CVS Health Corp. pharmacy to The Villages, Fla., for the retirement community, home to more than 135,000 residents.

The service will use Matternet's M2 drone system, UPS said.

UPS said drone transport offers a fast delivery option for medicines that are time-sensitive, while supporting social-distancing efforts.

The new service in The Villages, in central Florida begins, in early May under the Federal Aviation Administration's Part 107 rules, with authority to operate through the pandemic and explore ongoing needs as they arise after that period. The operation could expand to include deliveries from two additional CVS pharmacies in the area, the companies said.

The first flights will be less than a half mile and be delivered to a location near the retirement community. Initially, a ground vehicle will complete the delivery to the resident's door.

UPS shares were up 1.4% at $101.57 in late morning trading and CVS shares were up 1.4% at $63.20.

Last year, UPS and Matternet initiated a drone-delivery service at WakeMed's flagship hospital and campus in Raleigh, N.C., completing more than 3,700 flights to date. UPS established UPS Flight Forward in June 2019.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

April 27, 2020 12:00 ET (16:00 GMT)

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