Serve Robotics

SERV

Market cap $725M

SERV's Vayu acquisition sharpens its autonomy roadmap, boosting AI capabilities, operational efficiency and long-term delivery leadership.

Automation and robotics continue to reshape the technology landscape, powering everything from autonomous delivery to advanced semiconductor testing. Two companies at very different stages of maturity—Serve Robotics Inc. SERV and Teradyne, Inc. TER—demonstrate how rapidly the robotics and AI ecosystem is evolving.

Serve Robotics' Gen3 robot is capable of autonomously delivering food orders from restaurants. Uber is one of Serve's largest shareholders, and the companies are working together to deploy 2,000 robots into the Uber Eats network across America.

Growth has become a tough sell for investors this fall. With a week to go in November, many growth stocks—particularly in the technology sector—are down sharply.

Serve Robotics Inc. SERV entered third-quarter 2025 with momentum after an aggressive multiquarter expansion of its autonomous sidewalk-delivery fleet. But the stock has lost 17.1% since the earnings release on Nov. 12, significantly underperforming the Zacks Computers - IT Services industry, the broader technology sector, and the S&P 500.

Serve Robotics operates autonomous sidewalk delivery robots with a focused network strategy, whereas Richtech Robotics sells service robots across multiple verticals, including hospitality and healthcare. Serve holds over $200 million in cash and short-term investments to fund aggressive expansion, while Richtech has relied on ongoing share dilution to finance operations.

Serve Robotics is rated a hold due to promising technology but significant financial and execution risks. SERV's growth is driven by a major UberEats partnership and a large addressable market, but revenue is highly concentrated among two customers. Financial concerns include inconsistent revenue, negative gross margins, and growing net losses, raising questions about long-term profitability.

SERV's expanded DoorDash partnership and fleet growth fuel expectations for a potential 10x revenue boost in 2026.

Serve Robotics remains a "Hold" for me as its valuation is too high despite ambitious expansion and improving operational metrics. Their Q3 revenue grew 210% YoY but missed guidance; costs surged faster than revenue, raising concerns about SERV's business model viability. Management reaffirmed aggressive robot deployment and ARR targets, but gross-level profitability and cost structure remain problematic after recent acquisitions.

SERV's Q3 revenues beat estimates, but widening losses and surging costs keep margins under strain.