Lowe's launches drone delivery service in partnership with DoorDash and Wing

Lowe's is launching a drone delivery service in partnership with DoorDash and Alphabet's Wing, CNBC has learned exclusively.

The company said the new drone delivery service — a first in the home improvement retail space — will give customers access to over 100 products in a delivery window as fast as 20 minutes. A pilot program is already live in North Carolina, with plans for expansion.

Customers can order products directly through DoorDash, which will have drone delivery listed as an option for eligible customers. The drones currently transport orders of roughly 2.5 pounds per flight and operate within a 5-mile radius of the store in Matthews, North Carolina, according to the company.

Seemantini Godbole, chief information and artificial intelligence officer at Lowe's, said shoppers often tell the company they realize halfway through a project that they're missing a crucial item.

"Drone delivery fits perfectly because this was one of the friction points, like you're doing a project, and you're getting interrupted," Godbole said. "[But] you never left your home, you never left your job site, and then you just continued with the project. That's the whole premise."

She said the company is still testing the service, but if it's successful, Lowe's may expand the drone program beyond the North Carolina store.

"We wanted our tech teams to be positioned. ... We literally are going to the store every day," she said. "We are observing. We are listening to the feedback from our store associates and from DoorDash, and we could make changes as needed and be really agile, and so that's why we started here."

Godbole added that the drone delivery is not "technology for the sake of tech," but rather is a move to keep up with the changing needs of the Lowe's customer as part of the company's overall technology strategy.

With the announcement, Lowe's joins a growing cohort of retailers adding drone delivery to their options to optimize convenience and technology for customers in an effort to lift sales. Amazon, Walmart and Uber Eats already use drones to offer fast delivery to customers.

Godbole said the distinction for Lowe's is that it's the first home improvement retailer to offer drone delivery.

But drone technology has also faced criticism across the country from people concerned about noise and privacy issues, especially in states like New Jersey. Navigating more crowded airspace also requires regulatory approval.

Godbole said Lowe's is working to ensure its drones meet all standards and is leaning on the expertise of both DoorDash and Wing.

Godbole said while the drones are an important milestone in the company's technological advances, Lowe's is still focusing on improving its express same-day delivery and innovation for its shoppers while also incorporating AI into its internal processes for store associates.

"When associates and customers are interacting with Lowe's, I really want the technology to disappear, and I want the experience to shine through," Godbole said. "I want them to remember the projects they are doing, the items they are buying, the fulfillment experience they got, and all our technology efforts are geared towards that."