SERV Stock Rallies On Grubhub Partnership, DoorDash Deal Expansion — CEO Calls It 'Clearest Signal Yet Of Where We're Headed'

• Serve’s partnership with Grubhub will initially bring robot delivery to customers in Chicago, Los Angeles and Alexandria.
• More than 100 Grubhub merchants in Chicago and nearly 200 in Los Angeles are expected to participate, with additional restaurants joining over time, the company said.
• Serve is also expanding its DoorDash footprint into San Jose and Washington, D.C., its seventh and eighth major U.S. markets.

Serve Robotics Inc. (SERV) shares rallied in Monday’s pre-market trade after the autonomous delivery company announced a new Grubhub partnership and expanded its DoorDash Inc. (DASH) agreement to include two additional U.S. markets.

This comes as Serve looks to put more robots to work following its recent split with Uber Eats, with the company also launching a new micro-depot model and expanding beyond sidewalk delivery.

Serve shares were up nearly 10% in Monday’s pre-market trade.

Grubhub Deal Expands SERV’s Delivery Network

Serve’s partnership with Grubhub will initially bring robot delivery to customers in Chicago, Los Angeles and Alexandria. More than 100 Grubhub merchants in Chicago and nearly 200 in Los Angeles are expected to participate, with additional restaurants joining over time, the company said.

As part of the partnership, Wonder’s Alexandria location will also offer robot delivery through Serve’s autonomous network, giving customers another convenient way to order from the restaurant.

Serve CEO Ali Kashani said adding Grubhub and Wonder to the company’s network is the “clearest signal yet of where we are headed,” as each new platform expands the restaurants and neighborhoods its robots can serve.

SERV Expands DASH Footprint

Serve is also expanding its DoorDash footprint into San Jose and Washington, D.C., its seventh and eighth major U.S. markets.

Together, the two metros add a population of roughly eight million to Serve’s addressable footprint, while the company’s first Miami micro-depot is designed to provide a faster, lower-cost way to stage, charge, dispatch and maintain robots as it enters new neighborhoods.

Serve already has more than 2,000 robots deployed across the U.S., reaching approximately three million people and supporting delivery for more than 4,000 restaurants.

SERV Is Building A Bigger Robotics Business

The expansion comes alongside Serve’s push into new robotics applications. Its Diligent Robotics unit has begun rolling out Moxi 2.0, a hospital robot with up to 15 times faster perception, 10 times the onboard compute, and up to 18 hours of operating time.

The company also previewed Beacon, a countertop device designed to let more restaurants support Serve robot deliveries without additional back-of-house hardware.

Serve is also adding another potential revenue stream through Serve Advertising, which launched “Characters,” interactive robot experiences that allow brands to create conversational personalities for Serve’s delivery robots.

The first, Chomp, is a talking hamburger-wrapped robot developed with Grubhub, underscoring the company’s broader effort to increase fleet utilization and monetize its growing robot network beyond delivery fees.

What Retail Traders Think Of SERV Stock

Retail sentiment on Stocktwits around Serve trended in the ‘bearish’ territory at the time of writing.

SERV stock is down 52% year-to-date and 51% over the past 12 months. The Robo-Stox Global Robotics and Automation Index ETF (ROBO) is up 33% over the past 12 months, while the S&P Kensho New Economies Composite ETF (KOMP) is up 25%.

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