Shares in Serve Robotics (SERV) roared higher today after sealing a multi-year partnership with delivery firm DoorDash (DASH).
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Sidewalk Delivery
The San Francisco-based robotics firm said customers ordering via DoorDash from select stores and restaurants in Los Angeles may now have their orders delivered by a Serve robot rather than a cheery- looking human. It said that it plans to expand its DoorDash deliveries across the U.S. in time.
This marks a big expansion for Serve, which to date has deployed its robots solely on Uber (UBER) Eats orders since 2021.
“This partnership enables us to go to cities where DoorDash is the dominant player. Now that we have such a significant fleet size, there’s a very sizeable supply that we can provide to companies… and we’re looking for more demand, so that every minute of every day, the robots have access to more jobs,” Serve co-founder and CEO Ali Kashani said.
The tie-up with DoorDash will boost Serve’s revenues – see above – once it scales up to a level matching the Uber Eats partnership, he added.
Second Serve
Serve currently operates in cities including Los Angeles, Miami, Chicago and Atlanta through Uber Eats and has completed over 100,000 deliveries from more than 2,500 restaurants.
Earlier this week, SERV announced the deployment of its 1,000th third-generation robot. It said it remains on track to hit its goal of deploying 2,000 robots by the end of 2025.
Companies have increasingly been adopting automation for last-mile deliveries to reduce labor costs and speed up service times amid strong customer demand.
The partnership comes days after DoorDash unveiled its in-house delivery robot, Dot, which can navigate bike lanes, roads and sidewalks at speeds of up to 20 miles per hour.
DoorDash is no stranger to working with tech firms, which it feels can give it an advantage in delivering better customer service.
DoorDash has also partnered with Alphabet’s (GOOGL) Wing for drone deliveries and sidewalk bot startup Coco.
Is SERV a Good Stock to Buy Now?
On TipRanks, SERV has a Moderate Buy consensus based on 2 Buy and 1 Hold ratings. Its highest price target is $23. SERV stock’s consensus price target is $19, implying a 38.23% upside.
