Serve Robotics Inc. shares surged on Friday after the company disclosed a multi-year strategic partnership with a major food delivery platform to expand its autonomous delivery services.
The robotics firm did not name the partner in its filing but said the collaboration would accelerate deployment of its sidewalk delivery robots across multiple U.S. cities. The agreement follows recent tests in Los Angeles and San Francisco, where Serve’s robots completed thousands of autonomous deliveries.
Serve Robotics did not provide financial terms of the deal, which is expected to drive revenue growth as the company scales operations. The partnership aligns with broader industry trends favoring automation in last-mile logistics, particularly in urban areas where labor costs and delivery efficiency remain key challenges.
Shares of Serve Robotics were up 12% at midday, extending gains after the announcement. The stock has gained roughly 40% over the past month, outpacing broader market benchmarks as investors bet on the company’s growth potential in the AI-driven delivery sector.
The company, which went public via a SPAC merger in 2023, has focused on developing autonomous sidewalk robots designed for short-distance deliveries. Analysts note that the partnership could validate its technology and open doors to additional contracts with retailers and logistics firms.
Serve Robotics has not provided updated guidance following the deal but said it expects the collaboration to contribute materially to its revenue in the coming quarters.
