Serve Robotics expands autonomous delivery service to Chicago

CHICAGO - Serve Robotics Inc. (NASDAQ:SERV), a $700 million market cap autonomous delivery company, launched its sidewalk delivery service in Chicago on Tuesday, marking its first expansion into the Midwest region. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, positioning it well for expansion initiatives.

The company’s AI-powered robots will deliver food from over 100 restaurants across 14 Chicago neighborhoods, including Lincoln Park, Lakeview, and the Near North Side, according to a company press release.

This expansion follows Serve’s previous launches in Los Angeles, Miami, Dallas-Fort Worth, and Atlanta as part of its ongoing partnership with Uber Eats, the delivery platform of Uber Technologies Inc. (NYSE:UBER). While the stock has seen a significant 104% gain over the past six months, recent market sentiment has led to an 11% decline in the past week.

"Chicago is a city known for its food and big personality, and we’re thrilled to add our robots into the mix," said Dr. Ali Kashani, CEO and co-founder of Serve Robotics. While the company currently operates at negative EBITDA of -$58.1M, InvestingPro analysis shows analysts anticipate sales growth in the current year. Get access to 10+ additional ProTips and comprehensive financial metrics with an InvestingPro subscription.

Megan Jensen, Head of Autonomous Delivery Operations at Uber Eats, stated that the partnership "reflects our commitment to redefining the customer delivery experience."

The Chicago launch represents another step in Serve’s plan to deploy 2,000 delivery robots across the U.S. by the end of 2025. The company has focused on Chicago due to its extensive pedestrian infrastructure and vibrant dining scene.

Serve Robotics, which spun off from Uber in 2021 as an independent company, has completed tens of thousands of deliveries for enterprise partners including Uber Eats and 7-Eleven. Discover detailed insights about SERV and 1,400+ other stocks through comprehensive Pro Research Reports, available exclusively on InvestingPro.

The sidewalk robots aim to provide contact-free delivery service while offering a more sustainable delivery option for urban environments.

In other recent news, Serve Robotics has made significant strides with its recent acquisition of Voysys AB, a Swedish company specializing in ultra-low latency video streaming and connectivity technology, for approximately $5.75 million. This strategic move aims to bolster Serve Robotics’ technology stack, enhancing the deployment capabilities of its autonomous delivery robots. Additionally, Cantor Fitzgerald has maintained its Overweight rating on Serve Robotics, with a price target of $17.00, following the acquisition announcement. The firm noted the company’s compelling unit economics and strategic partnerships as key factors in their assessment.

Furthermore, Wedbush analyst Daniel Ives initiated coverage of Serve Robotics with an Outperform rating and a $15 price target. Ives highlighted the company’s unique position in capitalizing on the growing adoption of AI-driven last-mile delivery vehicles. Serve Robotics has also been active in expanding its operational capacity, deploying 120 robots in the second quarter to reach a total fleet size of 400 units. The company plans to deploy approximately 2,000 robots by the end of the year, with expectations to double the fleet size in the third quarter. These developments mark a notable period of growth and strategic advancement for Serve Robotics.

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