Serve Robotics Raises $80M for Sidewalk Delivery Robots

Serve Robotics Secures $80 Million in Funding

Serve Robotics, a company supported by both Nvidia and Uber, has successfully completed a direct offering, raising $80 million through the sale of 4.2 million shares of common stock.

This new influx of capital is strategically intended to extend the company’s financial runway through 2026.

Furthermore, it will facilitate the scaling of their robotic fleet.

Fleet Expansion Plans

Currently, Serve operates 100 robots within Los Angeles. The company aims to significantly increase this number to 2,000 robots deployed across multiple U.S. cities by the close of 2025.

According to Serve CFO Brian Read, the funds aren’t earmarked for short-term spending. Rather, they represent a long-term financial reserve to support growth beyond the initial 2,000 robot deployment.

Recent Funding History

This latest investment follows a previous round in December 2024, which generated $86 million in gross proceeds through an at-the-market facility and warrant exercises.

Over the past 12 months, Serve Robotics has amassed a total of over $247 million in funding.

Use of Funds and Financial Strategy

The $80 million offering is anticipated to finalize on Tuesday.

While Serve has not detailed specific allocations, the funds will be directed towards working capital to support business development and robot deployment.

Self-Funding Investments: A key objective is to utilize cash reserves for equipment investments, thereby eliminating the need for external equipment financing and its associated costs.

Read emphasized the company’s commitment to minimizing its cost of capital.

Previously, robot financing incurred interest, required deposits, and involved security interests on the hardware.

Now, with direct ownership of the robots, Serve anticipates improved cash flow and greater financial flexibility.

“This funding not only solidifies that approach from today, but also we are now positioning ourselves from what 2026 and 2027 is going to start to look like,” Read stated.

Current Operations and Partnerships

Currently, Serve is conducting deliveries in Los Angeles with approximately 100 robots.

These robots serve around 300 restaurants through Uber Eats and 7-Eleven.

In October, the company initiated a trial partnership with Wing in Dallas, integrating sidewalk robots with drone technology for delivery services.

Future Outlook and Cash Flow

Serve intends to deploy an additional 250 robots in Los Angeles during the first quarter of 2025.

Through a contract with Uber Eats, the company projects to have up to 2,000 robots operational in various U.S. cities by the end of the following year.

Read anticipates achieving operational cash-flow positivity once the full fleet of 2,000 robots reaches full utilization.

This report has been updated to incorporate further details and insights from Brian Read, CFO of Serve Robotics.