Serve Robotics Inc. Common Stock

Serve Robotics reported a wider second-quarter loss and cut its full-year revenue outlook, sending shares down 17.8% since the Aug. 6 earnings release. Loss per share widened to 80 cents from 36 cents a year earlier, while revenue jumped 404.4% to $3.24 million, missing the Zacks Consensus Estimate by 15.9% on earnings and 8.5% on revenue. The company lowered 2026 revenue guidance to $9 million to $10 million from $26 million previously, citing weaker delivery volumes and an uncertain Uber partnership that it does not expect to renew after early 2027 unless the operating model improves. Serve Robotics also posted a gross loss of about $8.8 million and non-GAAP operating expenses of about $40.4 million in the quarter, while its forward 12-month price-to-sales ratio stands at 13.31, a premium to industry peers. Zacks maintains a Hold rating on the stock, noting that software and recurring revenues are expanding and DoorDash deliveries grew nearly 50% sequentially, but near-term challenges from lower volumes and widening losses limit upside.

QuikBot Technologies is building the infrastructure layer for autonomous delivery, while Serve Robotics sees its market value fall despite operational growth. Serve Robotics traded at about $4.98 per share on August 24, 2026, giving it a market capitalization of roughly $380 million, down from near $900 million in late 2025. The company has deployed 2,000 robots and serves 4,500 merchants, but its robots cannot enter buildings, leaving the final delivery step to humans. QuikBot, a Singapore-based private company, offers an Autonomous Final-mile Delivery platform that lets robots use lobbies, elevators, and corridors, and has signed commercial agreements with DHL Express, FedEx, and UPS. QuikBot has also partnered with Neolix for end-to-end delivery and with Embed Financial Group Holdings to develop insurance for autonomous systems.

Serve Robotics has partnered with Grubhub to fulfill food delivery orders using its sidewalk robots, just days after its years-long tie-up with Uber Eats fell apart. The rollout begins in Chicago, Los Angeles and Alexandria, and comes as Serve also launched with DoorDash in San Jose, California, and Washington, D.C., its seventh and eighth major US markets. CEO Ali Kashani told Reuters he expects the lost Uber volume to be more than replaced over time through Grubhub and other initiatives. The company slashed its full-year 2026 revenue forecast from $26 million to just $9 million to $10 million after Uber exited its stake and Serve decided not to renew the delivery agreement, citing falling order volumes and differing views. Serve's second-quarter revenue jumped 400% year over year to $3.2 million, boosted mainly by the addition of Diligent Robotics revenue rather than organic delivery growth, and the company lost more than $113 million on a GAAP basis in the first half of the year.

Serve Robotics cut its 2026 revenue forecast by more than half, sending its stock down about 15%. The company now expects full-year revenue of $9 million to $10 million, down from a prior forecast of $26 million, citing lower Uber Eats delivery volume than anticipated. Serve reported second-quarter revenue of $3.2 million, a 404% increase from a year earlier, but that included revenue from its January acquisition of Diligent. The company lost over $113 million on a GAAP basis in the first half of 2026 and had $240 million in cash and equivalents as of June 30. Serve stock is down almost 80% from its 2024 peak and trades at a price-to-sales ratio of 46.

Uber Technologies has sold its entire stake in autonomous delivery robot company Serve Robotics, catching the startup off guard. According to a regulatory filing on Friday, Uber disclosed the sale, having been reducing its stake in recent years. Serve Robotics was reportedly unaware of Uber's exit until news of the filing surfaced. The two companies have been partners since 2022, with an expanded deal in May 2023 for up to 2,000 sidewalk robots, but Serve hinted the partnership will not be renewed after it expires in 2027. Serve Robotics CEO Ali Kashani said during the recent second-quarter earnings call that from the first quarter of 2022 through the first quarter of this year, delivery volume through Uber grew for 17 consecutive quarters, but in Q2 that trend reversed for the first time due to lower-than-expected robot utilization. Kashani also noted the companies have differing views on their shared autonomous fleet and operating model. Serve reported second-quarter revenue of $3.28 million, missing a Street consensus estimate of $3.49 million, and lowered its 2026 revenue outlook to a range of $9 million to $10 million, down from a prior guide of $26 million, citing lower than expected delivery volume through its Uber Eats partnership.

Serve Robotics shares have dropped 36.6% year to date, underperforming the broader market as investors weigh heavy spending on artificial intelligence and platform expansion against rapid revenue growth. In the first quarter of 2026, fleet revenues surged to nearly $2 million from about $200,000 a year earlier, while software services contributed roughly $1 million and recurring revenues reached approximately $1.4 million, or just under half of total revenues. The company is shifting focus from adding robots to improving fleet utilization, with more than 800 robots active daily and over 10,000 daily supply hours provided to partners. A recent expansion into healthcare robotics through the acquisition of Diligent Robotics has established a presence across 44 cities in 14 states and supports nearly 2 million completed deliveries. Despite widening loss estimates of $2.67 per share for 2026 and $2.19 for 2027, the stock carries a Zacks Rank of 2, or Buy, and trades at a forward price-to-sales ratio of 9.84, a discount to industry peers.

Uber Technologies has outperformed Serve Robotics over the past three months while trading at a lower valuation, according to a Zacks Investment Research comparison. Serve Robotics operates the largest autonomous sidewalk delivery fleet in the United States with approximately 2,000 robots across 44 cities, but its first-quarter 2026 net loss widened to about $49 million and it ended the quarter with about $197 million in cash and marketable securities. Uber reported more than tenfold year-over-year growth in autonomous mobility trips, generated substantial free cash flow, and returned a record $3 billion to shareholders through share repurchases in the first quarter. Uber's trailing 12-month return on equity of 41.4% significantly exceeds Serve Robotics' negative average, while consensus estimates show Uber's 2026 earnings per share at $2.95 and 2027 at $4.42, compared with Serve Robotics' losses per share of $2.51 for 2026 and $2.19 for 2027. Both stocks carry a Zacks Rank #3, but Uber's superior profitability, stronger network effects, and lower execution risk give it better near-to-medium-term upside potential, while Serve Robotics remains a higher-risk, longer-term speculative opportunity.