Two DroneUp employees work on a delivery drone being used by Walmart at its Farmington, Arkansas, store. The retail giant recently invested in the Virginia Beach company to help assemble its drone delivery network. (Courtesy photo)

A Virginia Beach drone services company and the sole drone partner of the world’s largest retailer announced plans to expand its headquarters and establish a research and training facility outside Petersburg, creating 655 new jobs.

DroneUp, which has been working with Walmart since late 2021, announced plans to spend $27.2 million to expand in Virginia Beach and Dinwiddie County.

The company will spend $7 million expanding its Newtown Road headquarters, which it says will create 510 new jobs. DroneUp also plans to establish a new testing, training, research and development center for drone operators at Richard Bland College in Petersburg, creating 145 more new jobs.

Gov. Glenn Youngkin applauded the company and said it represents the forefront of drone development.

“This homegrown Virginia company is transforming product delivery through its partnership with Walmart, and we are proud to partner with DroneUp as it extends its footprint across the commonwealth and creates more than 650 cutting-edge jobs,” he said in a statement.

Virginia competed with Arizona, New York, North Carolina, and Texas for the project.

DroneUp CEO and founder Tom Walker said during Wednesday’s Virginia Beach Development Authority meeting that the company had grown from about 12 to almost 300 people since January 2021 and was looking to add hundreds more. He said the average DroneUp salary was $105,000. He also said it was an easy choice to remain in the area.

“I can’t imagine building this company anywhere else than here in Virginia Beach,” Walker said.

Also during the meeting, Virginia Beach Mayor Bobby Dyer said he believed DroneUp’s growth was the start of a wave of tech company investment in the city. He said having an incubator company survive and thrive in the city sends a powerful message to the tech sector and traditional tech powerhouse cities.

“Virginia Beach is on the cusp of such positive transformation,” Dyer said.

The project includes more than $5 million in public funding. Youngkin approved a $928,000 grant from the state’s Opportunity Fund and a $4 million Virginia Economic Development Incentive Grant. The Virginia Tobacco Region Revitalization Commission approved a $110,000 grant from the Tobacco Region Opportunity Fund. Virginia Beach also approved an $800,000 Economic Development Investment Program grant for the project.

DroneUp launched in 2016 and connects more than 20,000 drone pilots with Walmart and other clients. The company also offers commercial flight services for infrastructure, construction sites and other locations.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com