If robots are the future, then the future appears to be now.
After launching its own autonomous delivery service this month, DoorDash (DASH) has now also reached out to a third-party service provider by entering into a partnership with Serve Robotics (SERV).
The autonomous delivery startup said on Thursday that the two companies have formed a multi-year partnership to deploy autonomous robot deliveries across the US.
The service will first be available to DoorDash customers in Los Angeles before expanding to other cities. Customers will be able to have their orders delivered by a Serve robot from merchants who elect to participate in the program.
“We’re thrilled to join forces with DoorDash to help bring the future of delivery to life,” Dr. Ali Kashani, co-founder and CEO of Serve Robotics, said in a statement. “By teaming up with DoorDash, we’re accelerating our vision to make sustainable, reliable robotic delivery available in every neighborhood across the US.”
DoorDash last week announced that it has launched what it calls the first commercial autonomous delivery robot that will be able to navigate bike lanes, roads, sidewalks and driveways.
Called Dot and designed by DoorDash Labs, the company noted that it is one-tenth the size of a car and can reach speeds up to 20 mph.
Harrison Shih, head of product at DoorDash Labs, said in a statement that the company is “building a multi-modal logistics platform where Dashers, autonomous robots, and drones each play a role in making deliveries faster, more efficient, and more sustainable” and its partnership with Serve gives it “even more delivery options, expanding how we fulfill orders for consumers and merchants alike.”
Serve’s stock soared 28.6% on news of the partnership with DoorDash. It is up nearly 31% for the year.
Shares of DoorDash dropped 2% on Thursday, but the stock has gained 64.2% for the year.
Wall Street has been bullish on Serve’s growth trajectory, especially as autonomous technology continues to boom across multiple sectors.
Wedbush analyst Dan Ives initiated coverage on the startup in August with an Outperform rating, praising the company’s robotic fleet for proving it can safely navigate city streets and sidewalks while offering reliable, contactless delivery.
He also noted that merchants don’t need technical expertise to deploy Serve’s robots, which lowers barriers to adoption.
“Serve is positioning itself within the industry by building multiple revenue streams, including delivery, software services, and advertising,” Ives wrote.
Serve plans to launch 2,000 AI-powered robots by the end of the year.
The company also has a partnership with DoorDash rival UberEats (UBER) and expanded its service with Uber into Chicago last month. This marked the fifth US city where its service is available – joining Los Angeles, Miami, Dallas–Fort Worth, and Atlanta.
Cantor Fitzgerald analysts reiterated their Overweight rating for the company this week, while also maintaining a $17 price target.
The analysts were especially bullish on Serve’s expansion into Chicago, noting that it “strengthens growth trajectory and geographic scale” for the company.
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