Serve Robotics steps into restaurant kitchens with Vebu acquisition
Adds details on earnings, capital raise, shares paragraph 6 onward
By Deborah Mary Sophia
Nov 7 (Reuters) -Serve Robotics SERV.O, known for its sidewalk delivery robots, is branching out from its mainstay focus on automated delivery solutions and into restaurant kitchens through its acquisition of the 'Autocado' technology seen at burrito chain Chipotle Mexican Grill CMG.N.
Serve said on Thursday it would acquire Vebu, the company behind the avocado processing robot Autocado, which automates the cutting, coring and scooping of avocados. Chipotle has been testing the robot for several quarters and recently deployed the technology in locations in California.
The move will allow Serve to start working within restaurants and expand its scope in the restaurant sector - which it currently only serves through its sidewalk robots that deliver food for Uber Eats.
San Francisco-based Serve also plans to sign on more partners as it builds on the Autocado technology.
"We will definitely be looking to partner with more customers (restaurants) in the future," CEO Ali Kashani said in an interview, adding that the company was targeting becoming a "one-stop shop" for restaurant automation tech.
Separately, Serve also reported results for the third quarter, with revenues shrinking more than 50% from the prior three-month period due to a sharp decline in software services revenue. That sent the company's shares down 9% in after-hours trading.
Kashani said Serve will more than double the number of restaurants it serves by the end of this year, with its new-generation delivery robot helping it scale quickly from about 300 locations currently to 750.
Serve has an agreement with Uber Eats to deploy 2,000 robots by the end of 2025. On Thursday, Serve said it was ahead of schedule with the initial manufacturing and rollout required to hit the target, reporting a 23% sequential increase in daily active robots in the third quarter.
Serve, which also completed a $32.3 million capital raise in the quarter, did not provide financial details on the Vebu deal. Post acquisition, Serve will integrate Vebu as a new business unit.
Reporting by Deborah Sophia in Bengaluru; Editing by Shailesh Kuber
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
