Walmart and its partner, DroneUp, are scaling back its delivery operations in three states to concentrate efforts on the Dallas-Fort Worth area. According to Axios, DroneUp is closing 18 Walmart delivery hubs in Phoenix, Salt Lake City, and Tampa, impacting 70 employees-about 17% of DroneUp’s workforce in these regions. These closures follow the 2022 launch of what was described as the first large-scale drone delivery operation in the U.S. Despite providing valuable insights into consumer demand, the smaller-scale operations were deemed unsustainable.