Why Serve Robotics Stock Is Soaring Again Today

Serve Robotics (SERV 27.77%) the stock makes explosive gains on Wednesday. The company’s stock price was up 25.1% at 10:30 a.m. ET, according to data from S&P Global Market Intelligence. Shares rose as much as 39.2% earlier in the trading day.

After the market closed yesterday, Serve Robotics released its second quarter results. While there was nothing shocking in the company’s financial performance for the quarter, the business appears to be seeing healthy growth in activity. Even better, Serve followed up its Q2 report by announcing a major new partnership with Uber and Shake Shack.

Serve’s robotic delivery network continues to grow

Serve Robotics specializes in last-mile delivery vehicles and was spun off from Uber earlier this year. The company had its initial public offering (IPO) in April and later saw its price rise after it was revealed that Nvidia had a small stake in the business.

The service posted a loss of about $9 million on revenue of about $470,000 in the first quarter. About $300,000 of the company’s sales in the second quarter came from a software services deal that the company closed. Magna International — a leading supplier of auto parts. While the deal has largely been closed and Serve does not expect additional software revenue from that source in Q3, the actual delivery business could grow rapidly.

The company ended the second quarter with 48 daily active bots, an 85% year-over-year increase and a 23% increase from the previous quarter. Thanks to the increased number of delivery bots and increased activity per unit, the total average number of hours its bots were able to accept offers and make deliveries increased 106% year-over-year to 385 hours per day. This is still a fairly small operational footprint, but it looks like the business is poised to grow dramatically in the not-too-distant future.

Serving lands a big deal with Shake Shack

In a press release issued this morning, Serve Robotics announced that it has entered into a new delivery partnership with Shake Shack through Uber Eats. Serve will roll out 250 new delivery robots in the Los Angeles area by the end of the first quarter of 2025, and some of them will be put to work delivering orders for the burger chain.

Through its partnership with Uber Eats, Serve expects to have 2,000 delivery robots deployed by the end of 2025. The robotics specialist estimates that the total commitment to the fleet will generate between $60 million and $80 million annually.

Serve Robotics stock is now up more than 450% in the past month. On the other hand, the company’s share price is still down about 49% from the high that followed its public debut earlier this year.