Uber surprised robotics company Serve by selling its entire stake

Uber has recently sold its entire stake in Serve Robotics, the autonomous delivery robot company that was spun off from the ride-hailing giant more than five years ago. This surprising move was disclosed in a regulatory filing, a fact that came as a shock to Serve Robotics itself. The company had been reducing its stake in Serve over the past year, becoming fully exonerated only after the final selloff was officially announced.

The end of their collaboration comes at a time when the two entities have started to diverge on the business side. Serve Robotics, initially known as Postmates X, the robotics division of Postmates that Uber acquired in 2020 for $2.65 billion, spun off as an independent company in 2021. The name 'Serve Robotics' comes from the autonomous sidewalk delivery bot developed by Postmates X.

Their partnership began in 2022, with an expansion in May 2023 to deploy up to 2,000 of Serve's sidewalk bots onto Uber's app across multiple U.S. markets. However, it seems Uber began distancing itself from the venture earlier this year, as indicated by comments made during Serve's second-quarter earnings call earlier this week.

Serve Robotics' co-founder and CEO, Ali Kashani, pointed out that the companies have differing views on the operating model for scaling their shared autonomous fleet. This includes aspects like fleet coordination and merchant integration. Kashani also mentioned that Serve Robotics experienced significant growth in deliveries with another food delivery partner during the same period, suggesting a shift in strategy.

Despite the partnership ending when it expires in early 2027, Serve Robotics remains one of Uber's more than 30 autonomous vehicle technology companies that the ride-hailing company has partnered with or invested in over the past several years.