Serve Robotics raises $80 million to expand delivery robot fleet

The news: Autonomous delivery company Serve Robotics raised $80 million to increase its fleet of delivery robots ahead of a planned expansion in Los Angeles and the Dallas-Fort Worth metro area, per TechCrunch.

How we got here: Serve has grand ambitions to transform last-mile delivery. The company sees its robots as a more affordable, convenient, and environmentally sustainable delivery solution—albeit one that currently has a limited range of just two miles and is only available to customers in select Los Angeles neighborhoods.

  • The additional funding will help Serve achieve its goal of having 2,000 delivery robots by the end of 2025, up from around 100 today.
  • The company is currently broadening its Los Angeles delivery range to include downtown LA and the Sawtelle and Westwood neighborhoods, and it plans to expand into Dallas-Fort Worth by the end of Q2.
  • Serve has also secured deals with drone delivery company Wing and Shake Shack to expand its delivery radius and reach, alongside an existing partnership with Uber Eats.

Looking ahead: The rapid growth of food delivery has created considerable opportunities for companies like Serve Robotics as restaurants look to get orders to customers cheaply and efficiently.

In particular, the company’s partnership with Uber should serve it well: We expect the latter’s restaurant sales to grow 15% this year, as consumers overlook higher prices and delivery fees in favor of convenience.

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