Serve Robotics ( SERV 9.64% ) The stock is experiencing significant growth on Wednesday, with the company’s stock price increasing by 25.1% at 10:30 a.m. ET, according to the data. S&P Global Market Intelligence is a platform that provides financial information and analysis. The stock had experienced an increase of 39.2% at its peak earlier during the day’s trading.
Serve Robotics released its second-quarter results after the market closed yesterday. The company’s financial performance for the quarter did not reveal any surprises, but it seems that there is a notable uptick in business activity. Additionally, Serve announced a significant new partnership following the release of its Q2 report. Uber and Shake Shack .
Serve’s automated delivery system is continuously increasing in capacity.
Serve Robotics is a company that focuses on vehicles for delivering items over short distances and was separated from Uber earlier this year. The company went public for the first time. IPO In April, the stock experienced a significant increase in value following the disclosure that Nvidia had a minor ownership interest in the company.
Serve experienced a loss of around $9 million in the first quarter, despite generating revenue of about $470,000. A significant portion of the company’s second-quarter sales, totaling around $300,000, stemmed from a software services agreement it had in effect. Magna International is a global automotive supplier that designs, develops, and manufactures automotive systems, assemblies, modules, and components. — a prominent provider of automotive components. Although the acquisition has been largely finalized, Serve does not anticipate generating further income from software sales related to this agreement in the third quarter. However, there is potential for rapid expansion in the delivery sector.
At the end of the second quarter, the company had an average of 48 active robots per day, which is an 85% increase from the previous year and a 23% increase from the previous quarter. The total number of hours that the robots were able to accept offers and make deliveries also increased significantly by 106% year over year, reaching 385 hours per day. Although the operational footprint is currently small, it appears that there will be a substantial increase in activity in the near future.
Serve has successfully secured a significant agreement with Shake Shack.
Serve Robotics shared in a press release today that it has formed a fresh collaboration with Shake Shack via Uber Eats for delivery services. Serve plans to introduce 250 additional delivery robots in Los Angeles by the conclusion of the first quarter of 2025, with a portion of them dedicated to fulfilling orders for the burger franchise.
By collaborating with Uber Eats, Serve plans to have 2,000 delivery robots in operation by the conclusion of 2025. The company specializing in robotics predicts that the complete utilization of the robot fleet will result in an annual revenue ranging from $60 million to $80 million.
The stock of Serve Robotics has increased by over 450% in the past month. However, the company’s share price remains about 49% lower than its peak after going public earlier this year.
