Nvidia and Uber-Backed Serve Robotics Secures $80 Million to Expand Robotic Fleet
Serve Robotics, fueled by investments from Nvidia and Uber, has just raised a substantial $80 million through a direct offering of 4.2 million shares. This strategic move is designed to extend the company’s financial runway through 2026 and ambitiously scale its fleet of delivery robots from the current 100 in Los Angeles to an impressive 2,000 across various U.S. cities by the end of 2025.
In a conversation with TechCrunch, Serve’s CFO Brian Read emphasized, “We’re not taking the more money just to burn through it in the next year. This is the long-term coffer to help us as we get beyond these 2,000 robots.”
- Total funds raised in past 12 months: $247 million
- Target cities: Multiple U.S. locations
- Current deployment: 100 robots in Los Angeles
“I’ve been trying to get our cost of capital as low as possible,” Read shared, highlighting that past strategies involved financing robots with associated interest costs.
— Brian Read, Serve Robotics CFO
The recent capital injection from unnamed institutional investors follows a December 2024 raise of $86 million through an at-the-market facility and warrants exercise. This funding serves as a critical step in positioning Serve for future growth, aiming for cost-effective ownership of robotic equipment.
Serve Robotics went public in April 2024 through a reverse merger and plans to close this latest $80 million offer shortly. While specific uses for this cash were not disclosed, it will primarily enhance working capital for business expansion and robot deployment.
In its journey towards financial optimization, Serve has made strategic moves. The $86 million raised previously will be directed towards self-funding equipment investments—ushering in financial flexibility and eliminating the need for costly equipment financing.
Scaling Up: The Path Ahead
Currently, Serve’s fleet operates in Los Angeles delivering for Uber Eats and 7-Eleven. The company also launched a trial with Wing in Dallas, combining sidewalk robots with drones for enhanced delivery capabilities.
- Additional 250 robots planned for Los Angeles by Q1 2025
- Full operational cash-flow positivity expected with 2,000 robots
- Partnerships include Uber Eats
The strategic expansion plan aims to put an additional 250 robots on Los Angeles streets in early 2025. With a contract through Uber Eats, Serve envisions operating up to 2,000 bots across multiple cities by year’s end. Once fully utilized, this fleet size is expected to make Serve cash-flow positive from an operational standpoint.
This story has been updated with further insights from Serve Robotics CFO Brian Read.
