DroneUp, started by a Navy veteran, launched with high praise – and up to $6 million in incentives – from state and local leaders. But the commercial drone company has failed to rise to expectations.
By Daniel Berti
Virginia Center for Investigative Journalism at WHRO
Virginia Beach-based drone delivery company DroneUp inked a blockbuster 2021 deal with Walmart to expand its delivery services to stores across the country.
DroneUp executives announced a massive hiring spree and a $27 million expansion of the company headquarters in Virginia Beach. State and local officials jumped on board, gushing praise and showering incentives on the veteran-owned startup.
“This is an impressive and highly impactful project for Virginia Beach, Dinwiddie County, and beyond that represents a new age of technology for our society, and DroneUp is at the forefront of Unmanned Aircraft System development,” said Governor Glenn Youngkin at the August 2022 announcement.
Today, DroneUp’s growth and promise have stalled. Walmart ended its relationship in 2025. The company did not meet the employment goals pledged to the state. Plans to build a drone training facility at Richard Bland College never materialized. The state and Virginia Beach recently cancelled their public funding of the company, which was contingent on job creation…