May 01, 2024 431

Uber, Nvidia-backed Serve Robotics hits public markets with $40M splash


Serve Robotics, the Uber and Nvidia-backed sidewalk robot delivery company, debuted publicly on the stock exchange Thursday, making it the latest startup to choose going public via a reverse merger as an alternative path to capital needed to fund growth.

Serve Robotics, backed by industry giants Uber and Nvidia, made its public debut on the stock exchange Thursday, marking the latest startup to opt for a reverse merger to access the capital required for growth. Following its reverse merger with blank-check company Patricia Acquisition Corp. in August 2023, Serve hit the Nasdaq under the ticker “SERV,” raising approximately $40 million in gross proceeds. This move underscores Serve's ambition to expand its presence and advance its robotic sidewalk delivery services, leveraging the momentum generated by its existing partnerships and investments.

While Serve's public debut through a reverse merger signifies a quicker path to accessing public markets, it also entails financial disclosures that shed light on the company's revenue, profits, or losses. Serve reported revenue of $207,545 in 2023, accompanied by losses of $1.5 million, indicating a challenging but evolving landscape for the company. However, Serve remains optimistic about its future prospects, expecting substantial growth fueled by funds generated from going public, with a vision to generate between $60 million and $80 million in annual revenue by 2025.

Serve's ambitious growth strategy revolves around scaling its fleet of sidewalk robots and expanding its geographic footprint, with plans to deploy up to 2,000 robots across multiple U.S. cities by the end of next year. The company's innovative approach not only addresses delivery challenges but also explores new revenue streams such as advertising on its sidewalk robots. As Serve charts its course in the rapidly evolving autonomous delivery market, its partnership with Uber and Nvidia, coupled with its focus on technological innovation and operational efficiency, positions it as a key player in shaping the future of urban delivery services.