Serve Robotics, the sidewalk robot delivery company backed by Uber and Nvidia, made its public debut on the New York Stock Exchange on Thursday. The company chose to go public through a reverse merger, a different path to raise capital for growth.
After completing its reverse merger with Patricia Acquisition Corp in August 2023, Serve began trading on the Nasdaq under the ticker “SERV”, raising approximately $40 million at a share price of $4.
With existing investors such as Uber, Nvidia, and Wavemaker Partners, Serve Robotics secured $30 million in funding simultaneously with the reverse merger, bringing its total raised amount to $56 million. While the company did not use a SPAC for its public debut, both reverse mergers and SPACs offer startups a quicker route to the public markets, despite potential risks.
Financial disclosures show Serve generated $207,545 in revenue in the previous year, with a loss of $1.5 million in 2023 and $1.04 million in 2022. The company anticipates significant growth from the funds generated through its public offering, which will be used for R&D, manufacturing, expansion, and operational purposes.
Serve aims to achieve between $60 million and $80 million in annual revenue with positive cash flow by the end of 2025. The company plans to scale its fleet of robots from 100 to 2,000 across multiple U.S. cities, focusing on partnerships with platforms like Uber Eats and 7-Eleven.
Ad revenue is expected to play a significant role in Serve’s revenue stream, potentially contributing up to 50% of total revenue according to CEO Ali Kashani. The company also emphasizes the scalability and safety of its robots compared to traditional delivery methods.
Serve’s autonomous robots operate at Level 4 autonomy, with remote human operators overseeing operations in certain scenarios. The company’s offering is set to close around April 22, with anticipated gross proceeds of around $46 million.
Upon completion of the merger, Uber will hold a 16.6% stake and Nvidia a 14.3% stake in Serve. Aegis Capital Corp, the underwriter, has the option to purchase additional shares to cover over-allotments.
Sarfraz Maredia, Uber’s VP of Delivery, has joined Serve’s board, further solidifying the partnership between the two companies.
Serve Robotics, formerly known as Postmates X, began its journey as the robotics division of Postmates, delivering autonomously to customers in Los Angeles in 2018. Following Uber’s acquisition of Postmates, Serve Robotics emerged as an independent company with a focus on sidewalk robot deliveries.
