Serve Robotics (SERV, Financial) has unveiled its delivery service expansion to the Atlanta metropolitan area. This strategic move follows the company's successful operations in Los Angeles, Miami, and Dallas-Fort Worth, furthering its partnership with UberEats, the food delivery service arm of Uber Technologies. Dr. Ali Kashani, CEO and co-founder of Serve Robotics, stated that entering Atlanta, one of the Southeast's largest and most rapidly growing markets, is a key step in their national expansion strategy. He highlighted the company's commitment to being at the forefront of the robotics delivery industry in the region.
SERV Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Serve Robotics Inc (SERV, Financial) successfully built 250 new 3rd generation robots in Q1, keeping them on track to deploy 2000 robots by the end of the year.
- The company expanded its delivery capacity by over 40% and increased delivery volume by 75% during Q1.
- Serve Robotics Inc (SERV) launched in two new markets, Miami and Dallas, and plans to launch in Atlanta by the end of Q2.
- The company raised an additional $91 million in Q1, ending the quarter with $198 million in cash, providing financial flexibility.
- Serve Robotics Inc (SERV) maintained high delivery quality, reducing delivery failures by 65% compared to the previous year.
Negative Points
- Total cost of revenues increased by approximately $1 million due to start-up costs related to fleet scaling and new market launches.
- GAAP operating expenses rose to $13.5 million in Q1, up from $12.9 million in Q4 and $8.3 million in Q1 of the previous year.
- The increased share of early-stage operations and fleet revenues negatively impacted the overall revenue mix.
- Despite revenue growth, the company reported a GAAP net loss per share of $0.23 and a non-GAAP net loss per share of $0.16.
- The company faces ongoing challenges with supply chain management and tariff impacts, although they have managed to offset these costs so far.
