Drone-based delivery services provider DroneUp has partnered with Elsight, an Israel-based drone connectivity solutions provider, for a commercial drone trial in Dallas-Fort Worth, US.

Elsight's Halo communications system enables DroneUp's drones to fly beyond-visual-line-of-sight (BVLOS) missions, allowing a single operator to remotely control a fleet of drones. The trial is part of DroneUp’s efforts to scale up drone delivery options and reduce costs from about USD 30 per package to less than USD 7.

The trial, monitored by the Federal Aviation Administration (FAA), involves Walmart's delivery system and two other competing drone parcel delivery providers, namely Alphabet's Wing and Zipline, operating simultaneously in the same airspace. This partnership and trial aim to pave the way for expanded commercial drone deliveries as official restrictions are relaxed.

Analyst QuickTake: The outcome could lead to greater operational freedom for the industry, potentially positively impacting Walmart and DroneUp's delivery operations. The FAA has already authorized Alphabet’s Wing and Zipline to conduct BVLOS drone-based deliveries in shared airspace in Dallas. Wing and Zipline have ties with Walmart, which could also benefit from the trial if successful.