Nvidia-Backed Stock Serve Robotics (SERV) Breaks Out Following Deal With Alphabet
Robot delivery company Serve Robotics is gaining momentum as it expands its footprint through key partnerships and investments with the likes of Alphabet, Uber, 7-Eleven and Nvidia.
Serve Robotics (NASDAQ: SERV), a leading player in sidewalk robot delivery, is seeing a renewed surge in investor interest in its stock as it continues to ramp up its operations through strategic partnerships. Last week, Serve Robotics announced a new collaboration with Wing, Alphabet’s (NASDAQ: GOOG, GOOGL) drone delivery unit, to pilot a new robot-to-drone delivery system, enabling fast and eco-friendly restaurant deliveries over a six-mile radius. This initiative represents a significant shift in last-mile logistics, tapping into the strengths of both robots and drones to overcome urban challenges and increase efficiency.
The Serve-Wing collaboration, currently being tested in Dallas, Texas, will allow Serve’s robots to pick up food from restaurants, transfer it to Wing’s AutoLoader stations for drone delivery, and reach customers located beyond the limitations of sidewalk deliveries.
“Together, Serve and Wing share an ambitious vision for reliable and affordable robotic delivery at scale,” said Dr. Ali Kashani, CEO of Serve Robotics.
This partnership aims to extend Serve’s reach, from the traditional two-mile delivery radius to six miles, allowing merchants to expand their customer base without altering their operations. Wing CEO Adam Woodworth added, “Through this pilot partnership, Wing hopes to reach more merchants in highly congested areas.”
Robot-to-Drone Delivery Tackles Urban Challenges
The Serve-Wing partnership brings a practical solution to the table, addressing longstanding challenges in drone adoption, such as the scarcity of takeoff and landing spaces in dense urban environments. Serve’s sidewalk robots are already adept at navigating these environments, making them an ideal match for drones to handle longer-distance deliveries. The company’s existing partnerships with Uber Eats and 7-Eleven, among others, have laid a strong foundation, particularly in Los Angeles, where Serve has already made tens of thousands of deliveries.
Serve Robotics Attracts Investment From Nvidia, Uber and 7-Eleven
With its operational expansion, Serve has strengthened its financial position. The company recently completed a $40 million public equity offering, followed by a $15 million private placement. Serve Robotics stock experienced a meteoric rise in July after it was revealed that tech giant Nvidia (NASDAQ: NVDA) purchased a significant $3.7 million stake in the company.
According to an SEC filing, in April, Nvidia converted a promissory note into 1.05 million shares of Serve Robotics stock at $2.42 per share. Nvidia bought an additional 62,500 shares of Serve Robotics stock in July at $4 per share worth $250,000. In total, Nvidia has invested approximately $12 million into Serve Robotics, equivalent to around 10% of the company.
Uber (NYSE: UBER) and 7-Eleven (OTC: SVNDY) have invested a combined $11.5 million into Serve Robotics.
Fleet Expansion
This financial momentum has enabled Serve to accelerate its fleet expansion, particularly with a manufacturing agreement with Magna, a major contract manufacturer. Serve is set to deploy up to 2,000 delivery robots under a contract with Uber Eats by the end of 2025, with 250 of these robots hitting the streets of Los Angeles by early 2025.
Kashani pointed out the significant revenue potential this could unlock for Serve Robotics, stating:
“We believe our continued execution of this plan through year-end 2025 will position Serve to deploy all 2,000 robots under our Uber Eats agreement.”
As Serve Robotics scales up, it remains at the forefront of a growing movement toward eco-friendly, automated delivery solutions. Both Serve’s robots and Wing’s drones are fully electric, contributing to the reduction of carbon emissions and alleviating urban traffic congestion.
The push toward sustainable logistics is a key component of Serve’s strategy, with Kashani noting that “our end-to-end robotic delivery solution will be the most efficient mode for the significant majority of deliveries.”
Poised to Lead the Future of Autonomous Delivery
Looking ahead, Serve Robotics’ trajectory is closely tied to the success of its partnership with Wing and its ability to continue scaling operations in key markets. With a strengthened financial foundation and growing interest from investors like Nvidia, Serve appears poised to lead the future of autonomous, multi-modal delivery. As cities become increasingly congested, Serve’s robot-to-drone delivery model could well become the go-to solution for businesses looking to deliver goods faster, more affordably, and with a smaller carbon footprint.
Serve Robotics (SERV) Stock Breakout and Chart
Shares of Serve Robotics (NASDAQ: SERV) stock experienced a breakout today from its bull pennant chart formation, rising 11.74% to close the day at $9.80 per share.
Since its IPO in April, Serve Robotics stock has soared as much as 407%, reaching an all-time high of $24.09 on July 30, 2024.
Following its peak in late July, SERV stock experienced a pullback of approximately 60%, before consolidating sideways to form its bull pennant chart pattern.
Bull pennants and flags are continuation chart patterns in technical analysis, which often provide a reliable signal that another breakout could be on the horizon, followed by the continuation of an uptrend.
Bull pennant chart setups such as the one detailed in the Serve Robotics stock chart below are often an early signal of a larger impending move.
With SERV stock breaking out and closing above the upper resistance line of its bull pennant pattern today, look for a potential continuation of the breakout on increased volume tomorrow.
View Serve Robotics Interactive Stock Chart on Barchart
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
