Alphabet Inc (NASDAQ:GOOG,NASDAQ:GOOGL) is ending its drones partnership with Starbucks Corporation (NASDAQ:SBUX).
Google’s parent company launched Project Wing with the intent of advancing the world of delivery drones, but the tech giant has been paring down as its multiple branches are proving to be more expensive than anticipated.
Project Wing is part of of Alphabet’s X research lab and it has been working to remove friction in the way a number of products are transported. However, the company had to make the difficult decision of ending its partnership with Starbucks.
The drone business is in a tough spot as their future is uncertain, and Alphabet is trying to ensure that the advancement of this technology will result into profitable ventures, rather than experimenting with its functionalities without a defined aim in sight.
Additionally, it is unclear what the U.S. regulations for drone will be going forward as agencies such as the Federal Aviation Administration have been making moves to ensure the use of drones is limited, controlled and safe.
The Starbucks deal would have helped to deliver coffee products, but the partnership came to an end due to the fact that Alphabet was looking to obtain more customer data than the coffee chain was willing to offer.
Google had been looking to deploy drones that are capable of delivering medicine and health-care equipment such as nebulizers. However, this initiative did not have the potential many had hoped and the company is now focusing on delivering food and perishables.
GOOG shares fell 1.1% Wednesday, GOOGL stock lost 1.2% and SBUX shares gained a fraction of a percentage.
