Serve Robotics Raises $80M to Scale Sidewalk Delivery Robot Fleet

Serve Robotics, a company backed by Nvidia and Uber, has successfully raised $80 million through a direct offering of 4.2 million shares of common stock. This funding will enable the company to extend its runway through 2026 and expand its fleet from the current 100 robots operating in Los Angeles to a target of 2,000 robots across multiple U.S. cities by the end of 2025. With the additional funding, Serve Robotics aims to achieve long-term sustainability beyond the deployment of 2,000 robots. 

The $80 million capital injection, sourced from unnamed institutional investors, supplements the $86 million in gross proceeds Serve previously secured in December 2024. The company, which went public earlier this year through a reverse merger, anticipates the $80 million offering to conclude on Tuesday, subject to specific closing conditions. Serve intends to utilize the funds to bolster working capital for business expansion and robot deployment.

Additionally, the $86 million raised in December will support self-funding equipment investments, allowing the startup to eliminate equipment financing and associated servicing costs. According to Serve CFO Brian Read, this strategic move has significantly improved the company's cash flow and financial flexibility.

Serve Robotics currently operates approximately 100 delivery robots in Los Angeles, serving around 300 restaurants through platforms such as Uber Eats and 7-Eleven. Moreover, the company has initiated a trial in partnership with Wing in Dallas, combining sidewalk robot delivery with drone delivery. Plans are in place to introduce an additional 250 robots in Los Angeles in the first quarter of 2025, and eventually scale up to 2,000 robots across multiple U.S. cities by the end of next year through a contract with Uber Eats.

Serve anticipates achieving cash flow positivity from an operational standpoint upon full utilization of the 2,000-robot fleet. The article has been updated to include additional context and information from Serve Robotics CFO Brian Read.

Source: Tech Crunch