Serve Robotics Inc. (NASDAQ:SERV) announced on Tuesday that it has launched its autonomous sidewalk delivery service in the Chicago metropolitan area, marking its first move into the U.S. Midwest.
The expansion builds on deployments in Los Angeles, Miami, Dallas, Fort Worth and Atlanta through the company’s partnership with Uber Eats, the food delivery arm of Uber Technologies Inc. (NYSE:UBER).
Beginning Tuesday, Serve Robotics said its sidewalk robots will begin operating in 14 Chicago neighbourhoods, including Austin, Lakeview, Lincoln Park, Logan Square and the Near North Side.
Also Read: Serve Robotics Stock Is Surging Today: What’s Driving The Action?
The rollout will provide contact-free deliveries from more than 100 restaurants to hundreds of thousands of households across the city, the company said.
Dr Ali Kashani, CEO and co-founder of Serve Robotics, said, “Chicago is a city known for its food and big personality, and we’re thrilled to add our robots into the mix.”
“Our ongoing partnership with Serve Robotics reflects our commitment to redefining the customer delivery experience,” said Megan Jensen, Head of Autonomous Delivery Operations at Uber Eats.
Chicago offers a strong setting for sidewalk delivery, with its extensive pedestrian infrastructure, diverse dining landscape, and emphasis on innovation.
Serve said it has collaborated with local partners and community stakeholders to ensure its robots fit smoothly into the city’s food-focused and forward-looking community.
Serve said the Chicago launch represents a step toward its goal of deploying 2,000 AI-powered delivery robots across the United States by the end of 2025.
In August, Serve Robotics reported a second-quarter loss of 24 cents per share, wider than the analyst consensus estimate of a 21-cent loss, missing expectations by about 12.7%. The loss narrowed 11.1% compared with 27 cents per share in the same quarter last year. Quarterly revenue rose 37.1% year over year to $642,000, beating estimates of $624,800.
The company reiterated its long-term guidance, projecting an annualized revenue run-rate of $60 million to $80 million once its 2,000-robot fleet is fully deployed and reaches target utilization, which it expects in 2026. For the third quarter, Serve forecasts revenue of $600,000 to $700,000, representing a 170% to 215% increase from the prior year.
Price Action: SERV shares were trading lower by 3.33% to $11.33 at last check Tuesday.
Read Next:
Photo by Walter Cicchetti via Shutterstock
