Autonomous delivery startup Serve Robotics (SERV), which positions itself as “the future of self-driving delivery,” is starting to get Wall Street’s attention.
Wedbush analyst Dan Ives initiated coverage on the California-based company this week with an Outperform rating, pointing to Serve’s strong position in the fast-growing market for AI-powered last-mile delivery.
“Last mile” is the final step in the delivery process when a product moves from a local hub or distribution center to the customer’s front door.
Most companies are desperate to make cheaper, faster, and more efficient.
🚦 What Ives is seeing
Ives highlighted Serve’s robotic fleet, which has already proven it can safely navigate sidewalks and city streets while providing contactless service.
The big selling point is that businesses don’t need tech expertise to deploy these bots.
“Serve is positioning itself within the industry by building multiple revenue streams, including delivery, software services, and advertising — providing multiple avenues to generate stable top-line growth while capitalizing on increased enterprise desire to automate the commerce industry,” Ives wrote.
He slapped a $15 price target on SERV stock. That’s a bold call given the stock is down 16.7% year-to-date — though it’s surged 21.6% in just the past five days.
Other analysts are also leaning bullish. Of the seven tracked by MarketWatch, six rate the stock a Buy and one has it at Hold.
🛠️ Big move: Vayu Robotics acquisition
Serve also made waves this month with the acquisition of Vayu Robotics, a startup specializing in AI-driven navigation for urban robots.
“As ‘physical AI’ gains unprecedented momentum, acquiring Vayu positions Serve at the forefront of this paradigm shift in the robotics industry,” Serve said.
The deal expands Serve’s training capabilities, opens the door to new delivery use cases, and improves safety and speed.
CEO and co-founder Dr. Ali Kashani called it a “significant milestone” on the company’s roadmap to deploying autonomous robots “on sidewalks across the nation.”
🍕 Big-name partners, bigger ambitions
Ives also praised Serve’s roster of heavyweight partners: Uber Technologies (UBER), 7-Eleven, and Little Caesars, America’s third-largest pizza chain.
The company wants to expand its fleet to 2,000 robots by the end of 2025 while launching in more cities with favorable regulations.
“With plans to grow its autonomous robot fleet to 2,000 by the end of 2025, establish new partnerships, and launch operations in additional cities with favorable regulatory environments, Serve is strongly positioned to gain market share as demand rises for automation, operational efficiency, and sustainable delivery solutions,” Ives wrote.
📈 By the numbers
In its second-quarter earnings earlier this month, Serve reported:
- Delivery volume jumped 80% quarter-over-quarter
- Revenue hit $642,000, up 46% from Q1
- 120 new third-generation robots were deployed
- The company expanded into Atlanta and launched a pilot program in downtown Doha
Although Serve Robotics is still a small company, it’s growing fast and stacking up analyst confidence. If it hits its fleet and partnership goals, SERV could cement itself as the AI-delivery leader.
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