UPS Flight Forward, CVS Pharmacy to Develop Drone Delivery Applications
October 21 2019 - 4:15PM
- UPS and CVS Health have signed an agreement to explore drone
delivery options
- UPS expanding drone delivery operation beyond healthcare
campuses
UPS (NYSE:UPS) subsidiary UPS Flight Forward Inc. (UPSFF) and
CVS Health Corporation (NYSE:CVS.N) subsidiary CVS Pharmacy, Inc.
today announced they have agreed to develop a variety of drone
delivery use cases, including business-to-consumer operating
models.
The program will include delivery of prescriptions and retail
products to the homes of CVS Pharmacy customers from its retail
stores, in addition to other potential use cases from its other
business units. UPSFF is the only company approved to operate
a Drone Airline by the FAA under a Part 135 Standard approval
granted on September 27, 2019.
UPS Flight Forward, which already delivers medical samples by
drone at WakeMed Hospital in Raleigh, NC, is rapidly building out
its ground and air infrastructure to meet the needs of a diverse
customer base. UPS Flight Forward plans to deliver packages to
consumers at their homes in the near future.
“As the country’s first fully-certified drone airline, UPS
Flight Forward is rapidly building a robust customer base and a
network of technology partners to galvanize our leadership in drone
delivery,” said Scott Price, UPS chief strategy and transformation
officer. “We will create new logistics and delivery solutions no
one has ever considered. Previous industry thinking had been
limited to only ground transportation technology. Now we’re
thinking in three dimensions.”
“We’re always looking to improve convenience for customers
through faster, lower-cost and more efficient delivery models,”
said Kevin Hourican, president of CVS Pharmacy. “Given our focus on
innovation, we’re excited to be the first retail health care
company to explore drone delivery options with UPS.”
UPS Flight Forward announced this month that it has received the
U.S. government’s first full Part 135 Standard certification to
operate a drone airline. The certification is the highest level the
U.S. Federal Aviation Administration (FAA) grants a drone delivery
company. It permits the company to fly as many drones supported by
as many operators as necessary to meet customer demand.
The company has completed more than 1,500 revenue-generating
drone deliveries at the WakeMed campus since March 2019.
UPS Flight Forward plans, in the future, to transport other
items in many industries, and future tests together with CVS
represent the first foray into retail business expansion for the
UPS subsidiary.
UPS Flight Forward started by contributing to tests within the
FAA’s UAS Integration Pilot Program (IPP). That work centered on
the business model for drone delivery on healthcare campuses. The
company expects its residential delivery tests also will contribute
to the regulatory framework in the future.
UPS has established itself as a leader in unmanned aerial
vehicle delivery. The company has tested drones for urgent
commercial deliveries over water; funded and supported humanitarian
deliveries in Africa; and tested non-urgent commercial residential
delivery in rural areas with drones launched from a UPS package
delivery car.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. UPS was awarded America’s Best Customer
Service company for Shipping and Delivery services by Newsweek
magazine; Forbes Most Valuable Brand in Transportation; and top
rankings on the JUST 100 list for social responsibility, the Dow
Jones Sustainability World Index, and the Harris Poll Reputation
Quotient, among other prestigious rankings and awards. The company
can be found on the web at ups.com or pressroom.ups.com and its
corporate blog can be found at ups.com/longitudes The company’s
sustainability eNewsletter, UPS Horizons, can be found
at ups.com/sustainabilitynewsletter. To get UPS news direct,
follow @UPS_News on Twitter. To ship with UPS, visit
ups.com/ship.
About CVS
CVS Health is the nation’s premier health innovation company
helping people on their path to better health. Whether in one of
its pharmacies or through its health services and plans, CVS Health
is pioneering a bold new approach to total health by making quality
care more affordable, accessible, simple and seamless. CVS Health
is community-based and locally focused, engaging consumers with the
care they need when and where they need it. The Company has
approximately 9,900 retail locations, approximately 1,100 walk-in
medical clinics, a leading pharmacy benefits manager with more than
102 million plan members, a dedicated senior pharmacy care business
serving more than one million patients per year and expanding
specialty pharmacy services. CVS Health also serves an estimated 38
million people through traditional, voluntary and consumer-directed
health insurance products and related services, including rapidly
expanding Medicare Advantage offerings and a leading standalone
Medicare Part D prescription drug plan. The Company believes its
innovative health care model increases access to quality care,
delivers better health outcomes and lowers overall health care
costs. Find more information about how CVS Health is shaping the
future of health at https://www.cvshealth.com.
Kyle Peterson
404-828-4626
kylepeterson@ups.com
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