Serve Robotics: Uber Spinoff Focused on Delivery Robots

Serve Robotics Emerges as Independent Entity from Postmates X

The robotics division of Postmates, known as Postmates X, has officially transitioned into a standalone company under the name Serve Robotics. This development follows Uber’s acquisition of Postmates last year for a substantial $2.65 billion.

Seed Funding and Key Investors

Reports surfaced in January indicating that a potential investment deal was being presented to investors. Serve Robotics, deriving its name from the autonomous sidewalk delivery bot initially developed and tested by Postmates X, has successfully secured seed funding.

The funding round was spearheaded by venture capital firm Neo. Additional investors include Uber, alongside Lee Jacobs and Cyan Banister’s Long Journey Ventures, Western Technology Investment, Scott Banister, Farhad Mohit, and Postmates co-founders Bastian Lehmann and Sean Plaice.

Funding Phase and Intellectual Property

While specific funding details remain undisclosed, Serve Robotics confirmed that the current round, designated as a Series A, is still in progress. Funding for spin-offs often occurs in stages.

The initial funding tranche supports the company’s launch, with the remainder anticipated upon the complete transfer of intellectual property.

Leadership and Team

Ali Kashani, formerly the head of Postmates X, will lead the new company. He is joined by co-founders Dmitry Demeshchuk, the first engineer to join the Serve team at Postmates, and MJ Chun, who previously led product development at Anki and has been directing product strategy at Serve.

The company currently operates with a team of 60 employees, with headquarters in San Francisco and additional offices located in Los Angeles and Vancouver, Canada.

Vision for the Future of Delivery

“Robotic delivery not only removes the need for a driver but also eliminates the car itself, fostering sustainable and universally accessible delivery solutions,” stated Kashani, co-founder and CEO of Serve Robotics.

He envisions a future where mobility robots become integral to daily life, initially focusing on food delivery and expanding to encompass all types of goods over the next two decades.

Origins and Evolution of Serve

Postmates’ initial exploration into sidewalk delivery robots began in 2017 with the acquisition of Kashani’s startup, Lox Inc. As head of Postmates X, Kashani addressed the question of utilizing large vehicles for relatively small deliveries.

The first Serve autonomous delivery bot was unveiled in December 2018, followed by a second generation in the summer of 2019, featuring upgraded lidar sensors and other enhancements, in preparation for its planned commercial launch in Los Angeles.

Expansion and Partnerships

Serve Robotics will continue its delivery operations in Los Angeles. The company intends to intensify research and development efforts in the San Francisco Bay Area and broaden its market presence through strategic partnerships.

The core mission – to design, develop and operate delivery robots specialized in navigating sidewalks – remains central to the company’s objectives.

Uber’s Strategic Shift

This spinout aligns with Uber’s strategy to concentrate its resources on ride-hailing and delivery services, aiming for increased profitability. This shift gained momentum following Uber’s initial public offering in May 2019 and was further accelerated by the challenges presented by the COVID-19 pandemic.

Previously, Uber encompassed a diverse range of ventures, including ride-hailing, micromobility, logistics, public transit, food delivery, and ambitious projects like autonomous vehicles and air taxis.

CEO Dara Khosrowshahi has streamlined the company’s focus, prioritizing profitability over a broad portfolio of initiatives.

Recent Divestitures

In 2020, Uber divested its Jump scooter and bike unit to Lime, sold a $500 million stake in its logistics spinoff Uber Freight, and discontinued its autonomous vehicle unit Uber ATG and its air taxi program Uber Elevate.

Aurora acquired Uber ATG in a transaction mirroring the Jump-Lime deal. Instead of a cash payment, Uber transferred its equity in ATG and invested $400 million in Aurora, securing a 26% stake in the combined entity. Similarly, Uber Elevate was sold to Joby Aviation in December.

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