Serve Robotics steps into restaurant kitchens with Vebu acquisition (updated)

Serve Robotics

07/11/2024 23:32

(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)
 ((DeborahMary.Sophia@thomsonreuters.com;))