Serve Robotics raises $86M for last-mile delivery expansion

Serve Robotics Inc. today said it secured $86 million in December, bringing its total gross proceeds raised in 2024 to $167 million. The Redwood City, Calif.-based autonomous delivery company said it now has enough financial runway through the end of 2026.

“This liquidity position reflects strong confidence in our vision and market potential,” stated Brian Read, chief financial officer of Serve Robotics. “Looking ahead, we believe we are well-positioned to continue to scale our operations and enter new markets in 2025 and beyond.”

Spun off from Uber Technologies Inc. in 2021, Serve Robotics has developed low-emissions, artificial intelligence-powered robots with the goal of making sidewalk delivery economical and sustainable. The startup said it has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven.

Serve has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 last-mile delivery robots on the Uber Eats platform across multiple U.S. markets. It recently partnered with Alphabet Inc.’s Wing Aviation LLC unit on a pilot combining ground robots with aerial drones for last-mile deliveries.

Serve Robotics has raised $220M to date

Since its spinout from Uber, Serve Robotics said it has raised $220 million in total funding, including $13 million in 2021, $30 million in a 2023 reverse merger, and a $40 million initial public offering in early 2024.

The additional December 2024 funding includes proceeds raised through the company’s previously filed ATM facility and the exercise of warrants. As of Dec. 31, Serve had a total of approximately 51.5 million shares of common stock issued and outstanding.

The infusion of capital enables it to pay for its own equipment investments, eliminating the near-term need for equipment financing and its associated servicing costs. “By preserving balance-sheet flexibility and optimizing its cost of capital with efficient, lower-cost funding solutions, the company is well-positioned to support strategic initiatives and invest in further advancing its technology leadership,” said Serve.

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Third-generation robots ready for wide rollout

Serve Robotics said it plans to increase ramp up production of its third-generation robots and enter several new markets. The new model is designed to be safer and be manufactured at a reduced cost.

Announced in October, the robots can move about twice as fast, travel approximately twice as far on a single charge, and spend six more hours in the field each day, asserted Serve. The company is also using NVIDIA’s Jetson Orin module with 5x more on-board computing power for AI and autonomous navigation capabilities, Ouster’s new REV7 digital lidar, and an updated sensor suite.

The third-generation robots can hold four large 16-in. pizzas, or 15% more volume than Serve’s previous systems. They also include new suspension, improved water resistance, and enhanced emergency braking.

“Our cutting-edge robots will wheel into new cities and neighborhoods in 2025, and we can’t wait for users to experience their delivery capabilities firsthand,” stated Euan Abraham, chief hardware and manufacturing officer of Serve Robotics.

Shipments of delivery robots will expand from 14,000 in 2023 to 147,000 by 2030, a 37% compound annual growth rate (CAGR), predicted ABI Research. 

“Hospitals, agriculture, retail stores, and last-mile delivery are all nearing readiness for the mass adoption of mobile robots,” said George Chowdhury, robotics industry analyst at ABI Research.

Last month, Serve announced the appointment of Lily Sarafan to its board of directors. She has nearly 20 years of experience in entrepreneurship, executive leadership, and board governance and serves on the boards of Instacart, Thumbtack, and Kyo, as well as on the board of trustees of Stanford University.

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