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LOS ANGELES - Shake Shack Inc . (NYSE: NYSE:SHAK) and Serve Robotics Inc. (Nasdaq: SERV), an autonomous sidewalk delivery company, have announced a collaboration to deliver food orders using Serve's robotic technology via Uber (NYSE:UBER) Eats in Los Angeles. This partnership is a continuation of Serve's presence on the Uber Eats platform and a step towards their goal of deploying 2,000 delivery robots across the United States by 2025.
Customers who order from select Shake Shack locations in Los Angeles through Uber Eats may have their meals delivered by Serve's autonomous robots. The initiative is part of Serve's broader strategy to expand its geographic footprint in the U.S. and to provide a cost-effective, contactless, and environmentally friendly delivery option.
Serve Robotics, which spun off from Uber in 2021, has been operational in Los Angeles since 2022 and has completed tens of thousands of deliveries.
The autonomous robots used for deliveries are equipped with advanced GPS and artificial intelligence to navigate urban areas safely. These all-electric robots are designed to maintain the security of food items during transit and offer a contactless delivery option while reducing the carbon footprint associated with traditional delivery methods.
Touraj Parang, President and COO of Serve Robotics, emphasized the strategic value of the partnership with Shake Shack and Uber Eats, citing the successful delivery history with Uber Eats. Steph So, Senior Vice President of Digital Experience at Shake Shack, expressed enthusiasm for the collaboration, aligning it with Shake Shack's commitment to innovation and guest experience.
Noah Zych, Global Head of Autonomous Mobility & Delivery at Uber, highlighted the addition of a "little more Uber magic" through the sidewalk robot delivery for Shake Shack customers.
Shake Shack, known for its premium ingredients and American classics, has expanded to over 550 locations worldwide. The company has embraced technology through its Shack App, which allows customers to order ahead and pick up their food at a scheduled time.
This news is based on a press release statement and does not endorse the claims made by Serve Robotics or Shake Shack. The information provided here is factual, aiming to inform readers about the latest developments in autonomous delivery services within the food industry.
In other recent news, Serve Robotics has made several significant developments. The company has secured approximately $15 million through a private placement transaction with an institutional investor, facilitated by Aegis Capital Corp. This funding is expected to enhance Serve Robotics' technological offerings and expand its market reach in autonomous delivery services.
In addition, Serve Robotics has expanded its delivery operations into Koreatown, Los Angeles, and upgraded its robotic fleet's sensors through an augmented lidar supply agreement with Ouster, Inc. These developments align with the company's plan to deploy up to 2,000 robots by 2025.
In leadership changes, Euan Abraham has been promoted to Chief Hardware & Manufacturing Officer. His experience in hardware design is anticipated to drive innovation in the company's next growth phase.
Furthermore, Serve Robotics has strengthened its partnership with Magna International (NYSE:MGA) through an exclusive contract manufacturing agreement. This collaboration is expected to facilitate the expansion of Serve's robot fleet for Uber Eats and other U.S. markets.
Finally, the company's recent annual stockholders meeting saw the ratification of the company's public accounting firm and the approval of an amendment to its equity incentive plan. Sarfraz Maredia and David Goldberg were elected as Class I directors, and both will serve until the 2027 annual meeting of stockholders.
InvestingPro Insights
The recent collaboration between Shake Shack Inc. (NYSE: SHAK) and Serve Robotics Inc. (Nasdaq: SERV) has brought a spotlight on Serve's innovative approach to delivery services. As they push forward with their ambitious expansion plans, it is worth noting the current financial health and market performance of Serve Robotics.
According to InvestingPro data, Serve Robotics has a market capitalization of $381.35 million, reflecting its position in the market. Despite a significant revenue growth of 742.6% over the last twelve months as of Q1 2024, the company's gross profit margin sits at -53.99%, indicating challenges in profitability.
An InvestingPro Tip highlights that Serve Robotics operates with a moderate level of debt, which could impact its financial flexibility as it scales operations. Moreover, the stock has experienced high price volatility, which investors should consider when evaluating the stock's performance in the context of this partnership. Notably, the stock has seen a strong return over the last month, with a 352.84% increase, suggesting a positive short-term investor sentiment.
For readers interested in a deeper dive into Serve Robotics' financials and market performance, InvestingPro offers additional tips and metrics to help investors make informed decisions. There are 14 additional InvestingPro Tips available for Serve Robotics, which can be accessed at: https://www.investing.com/pro/SERV.
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