Serve Robotics (SERV) uses AI-powered robotics to deliver food, groceries, and other light goods through sidewalks in urban environments. These robots are rumored to cost around $30,000 upfront, but they’re expected to get cheaper, and companies are increasingly interested in acquiring them.
Uber (UBER) was the first in line and built a significant partnership with Serve Robotics, and it owns a stake in SERV. Serve Robotics has a partnership with Uber to deploy up to 2,000 delivery robots across multiple U.S. markets by the end of 2025.
The stock surged by around 20% today due to the announcement of a partnership with DoorDash (DASH). It will use Serve’s robots to fulfill orders on the food delivery platform.
Why SERV stock has more room for growth
There are approximately 3.16 million people employed in courier and local delivery services, like food. This is the workforce that Serve Robotics can end up replacing if companies find the cost of doing so to be lower than hiring real people.
Realistically, such a transformation could happen in the next decade as these robots have successfully completed thousands of deliveries and have even reported attempted thefts.
There could be hundreds of thousands of Serve Robotics robots as it builds up partnerships with Uber Eats and DoorDash, and possibly other companies like Grubhub. The U.S. online food delivery market generated approximately $353.3 billion in 2024.
Serve Robotics has a $1 billion market cap today, but I believe it could easily double, triple, or more from here in the next few years due to how big the market is.
I’d buy hand over fist.
— Omor IE
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Source: Money Morning