Serve Robotics Raises $13M Seed Round for Sidewalk Robot Deliveries
Serve Robotics Secures $13 Million to Expand Autonomous Delivery
Serve Robotics, a company specializing in autonomous sidewalk delivery, has successfully completed an expanded seed funding round, raising $13 million. This capital injection will be strategically allocated to accelerate the company’s growth initiatives.
Expansion Plans and Geographic Reach
The funding will primarily support Serve Robotics’ plans to broaden its service offerings to new customer segments and extend its operational footprint into additional geographic locations. This expansion necessitates the production of a larger fleet of sidewalk delivery robots.
“Our goal is to deploy robots in every major U.S. city within the next two to three years,” stated Ali Kashani, co-founder and CEO of Serve, in an interview with TechCrunch.
Strategic Investors Join the Round
Uber participated in this funding round as a strategic investor. Additional investors include DX Ventures, backed by Delivery Hero, 7-Ventures – the corporate venture arm of 7-Eleven – and Wavemaker Labs, a venture studio focused on food automation from Wavemaker Partners.
This investment builds upon Serve’s initial seed funding secured in March and welcomes contributions from existing investors such as Neo, Western Technology Investment, and entrepreneur Scott Banister.
Proven Track Record in Robotic Delivery
Serve Robotics has been actively delivering goods to Postmates customers across various Los Angeles neighborhoods since 2018, initially operating as “Postmates X,” the robotics division of the delivery platform.
Commercial service commenced in 2020, and the company’s robots have since completed tens of thousands of contactless deliveries. These deliveries originate from over 100 merchants located in both Los Angeles and San Francisco.
In November, Serve announced plans to integrate its on-demand robotic delivery service with Uber Eats customers in Los Angeles starting early next year.
Anticipating Future Collaborations
Kashani indicated that onboarding new strategic investors ahead of the Series A funding round was a deliberate move, offering insights into the company’s future direction.
“We are broadening our customer base beyond Uber Eats and Postmates, and we will be increasing our presence in Los Angeles while also expanding into new cities,” Kashani explained. “The investments from 7-Eleven and Delivery Hero suggest potential collaborations, details of which will be shared as they develop.”
Industry Interest in Autonomous Delivery
7-Eleven has demonstrated a strong interest in autonomous delivery, recently initiating a pilot program with Nuro utilizing their autonomous vehicles. Furthermore, the company’s Korean operations are testing sidewalk delivery robots developed by Neubility, and a drone delivery trial was conducted in Reno, Nevada, in 2016 with Flirtey.
Delivery Hero has also explored sidewalk robots, partnering with Starship Technologies in 2018 to serve customers of its Foodora delivery service.
Investor Confidence in Serve Robotics
“Serve Robotics has successfully implemented self-driving delivery in major U.S. cities and is a leader in robotics with its advanced autonomous technology,” stated Brendon Blacker, partner at DX Ventures. “This innovative technology has the potential to revolutionize the delivery landscape, and we are confident in Ali’s vision and the exceptional team he has assembled.”
Advancements in Autonomy and Reduced Reliance on Remote Pilots
Kashani revealed that Serve Robotics has upcoming announcements regarding advancements in its autonomous capabilities, though specific details were not disclosed.
Unlike some competitors, Serve aims to minimize the need for remote pilots. The company prioritizes independent robot operation.
“Our robots are designed to operate autonomously for the majority of the time,” Kashani said. “This is crucial for both safety and the economic viability of our operations, and it’s a key factor in our ability to operate commercially.”
Economic Considerations of Remote Operation
Kashani emphasized that relying on human operators is economically unsustainable, even with offshore labor. However, he acknowledged that a one-to-one human-to-robot ratio is inefficient. The goal is to enable a single human to supervise multiple robots simultaneously.
“Robots must possess onboard capabilities to ensure their safety when network connectivity is lost or when potential hazards arise,” Kashani explained. “Human oversight is valuable during complex scenarios, such as crossing streets, where robots interact with vehicular traffic. Robots will attempt to resolve situations independently, with human intervention available when necessary, prioritizing speed and efficiency.”
Preparing for Scalability in a Growing Market
The sidewalk robot delivery industry is gaining momentum, fostering competition among companies to develop the most sophisticated technology and effective market strategies. With this new funding and its strategic partners, Serve Robotics is well-positioned for rapid scaling.
“7-Eleven represents potential partnerships with convenience stores, while Delivery Hero highlights opportunities with delivery platforms,” stated Aduke Thelwell, head of communications at Serve, to TechCrunch. “We are actively pursuing collaborations with restaurant chains and exploring applications in medical delivery, pharmacy services, alcohol delivery, cannabis delivery, and other relevant sectors.”