United Parcel Service's Flight Forward subsidiary has won Federal Aviation Administration approval to set up a fleet of drones to deliver healthcare supplies to hospitals, according to The Wall Street Journal.
Flight Forward can immediately ship medical products and specimens to hospital campuses in North Carolina.
"We're going to move ahead quickly and expand rapidly," David Abney, Flight Forward chairman and CEO told the Journal.
Mr. Abney said he expects to expand services to 100 or more hospital complexes.
UPS began testing drones for transporting medical supplies at Raleigh, N.C.-based WakeMed Health and Hospitals this year.
The FAA approval gives UPS a leg up on rivals looking to make drone deliveries, including Amazon and Alphabet.
The company plans to eventually expand the service to homes, according to the report.