The autonomous sidewalk delivery robot firm, Serve Robotics, based in San Francisco, has taken a big step toward going public by concluding a reverse merger with Patricia Acquisition Corp.

The completion of the merger came after this month's successful investment round for Serve, which raised $30 million prior to the merger, according to a TechCrunch report. The investment increases Serve's total fundraising to $56 million, including participation from new investors Mark Tompkins and Republic Deal Room and previous investors Uber Technologies, NVIDIA, and Wavemaker Partners.

A Winning Move

Since its origins as Postmates X, the robotics section of on-demand delivery firm Postmates, Serve Robotics, has swiftly developed. In several Los Angeles areas, it deployed autonomous sidewalk robots delivered to Postmates clients in 2018. A commercial service was then provided in 2020. Postmates X split into a separate startup called Serve Robotics after Uber's $2.65 billion purchase of Postmates in late 2020.

(Photo : PATRICK T. FALLON/AFP via Getty Images)
A Serve Robotics food delivery robot drives down La Brea Avenue sidewalk, past Pink's Hot Dogs, on January 25, 2022 in Los Angeles, California.

Former Postmates X CEO Ali Kashani is the co-founder and CEO of Serve Robotics. He underscored the company's dedication to giving going public due thought. However, Kashani emphasized that using a reverse merger to go public provides a quicker and more effective option to take advantage of the company's expansion.

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Due to a bank run in March brought on by doubts over the viability of Silicon Valley Bank, the most recent fundraising round for Serve Robotics became additional relevance. The need for a more extensive investor base was rapidly recognized by the startup, which kept all of its money with SVB. This insight came simultaneously as a blank-check merger opportunity, which allowed Serve to change its financial approach.

Next Step: Business Expansion, Upgrades

Having successfully completed the reverse merger, Serve Robotics intends to use the increased funding to grow into other areas throughout the US and enhance its technology. The business plans to expand its current fleet of 100 robot delivery vehicles. Notably, Serve and Uber have a business arrangement to use up to 2,000 robots with Uber Eats, FinSMES reported.

The company Serve Robotics specializes in designing, creating, and managing zero-emissions robots for usage in public spaces, initially focusing on food delivery. The company's self-driving robots have made tens of thousands of contactless deliveries in locations like Los Angeles and San Francisco since it was founded in 2017 as a Postmates subsidiary.

Compared to other food automation firms' difficulties, Serve's smooth transition to public markets stands out. Due to financial restrictions, many businesses have shut down or laid off staff, especially in hard-tech industries like robotics, according to Spoon. Within five years, Serve Robotics went from being a Postmates initiative to a stand-alone business to a publicly listed firm, illustrating the startup's extraordinary history.

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