Shares of Serve Robotics surged on Tuesday after the autonomous delivery company announced expanded partnerships with DoorDash and Grubhub to deploy its robotics-based services in additional U.S. cities.
The Los Angeles-based firm said the collaborations would extend its operational footprint, covering more urban areas where demand for contactless delivery has grown. While financial terms were not disclosed, the partnerships signal growing adoption of robotics in last-mile logistics, a sector traditionally reliant on human labor.
Serve Robotics, which went public via a SPAC merger in 2023, has focused on deploying autonomous sidewalk robots for food and grocery deliveries. The company’s vehicles operate in select cities, including Los Angeles and San Francisco, under regulatory permits.
Analysts noted that the expansion could support revenue growth as the company scales its fleet and secures more commercial agreements. The stock, which had traded below $1 for much of 2024, rose as much as 15% in early trading before paring gains to around 10% by midday.
The broader robotics and automation sector has seen increased investor interest amid labor shortages and rising wage pressures in logistics. Serve Robotics’ latest deals follow similar initiatives by competitors, including Starship Technologies and Nuro, which have also expanded partnerships with major food delivery platforms.
DoorDash and Grubhub, both dominant players in the U.S. food delivery market, have been exploring robotics to reduce operational costs and improve delivery efficiency. The move aligns with a broader trend in the industry toward automation, though regulatory and safety considerations remain key challenges for widespread adoption.
Serve Robotics did not provide a timeline for the expanded deployments but stated that the initial focus would be on high-density urban areas with strong delivery demand.
