Serve Robotics Inc. (NASDAQ: SERV) stock surged 12.77% in premarket trading on October 9, 2025, reaching $15.50 as of 7:38 AM EDT, following the announcement of a strategic partnership with DoorDash to deploy its autonomous sidewalk robots for food delivery across the United States. The collaboration marks a significant expansion for the San Francisco‑based robotics company, which previously operated exclusively through Uber Eats since 2021. This multiyear partnership with the nation’s leading food delivery platform is expected to substantially increase order volume and revenue as Serve scales its operations to meet growing demand for automated last‑mile delivery solutions.
New Partnership Marks Serve’s Next Growth Phase in Autonomous Delivery
The partnership enables Serve Robotics to deploy its sidewalk robots for DoorDash orders starting in Los Angeles, with plans to expand nationwide. According to CEO Ali Kashani, this collaboration addresses a critical need for increased demand to keep the company’s growing fleet operational. “This partnership enables us to go to cities where DoorDash is the dominant player,” Kashani explained in an interview. The non‑exclusive arrangement allows Serve to optimize robot utilization by taking orders from both DoorDash and Uber, similar to how delivery workers toggle between multiple apps to maximize earnings.
The timing of this announcement is particularly significant as it comes just days after DoorDash unveiled its own in‑house delivery robot, Dot, demonstrating the food delivery giant’s commitment to autonomous delivery technology. Kashani views this as validation of Serve’s eight‑year mission, noting that both major delivery platforms are now “investing quite a bit in autonomy.” The partnership is expected to boost Serve’s revenues once it scales to match the level of its Uber Eats operations, which has already completed over 100,000 deliveries from more than 2,500 restaurants across Los Angeles, Miami, Chicago, and Atlanta.
SERV Stock Surges Amid Optimism About Growth and Operational Scaling
As of October 8, 2025, SERV closed at $13.74, down 3.41% for the day, but the DoorDash partnership announcement triggered a strong pre‑market rally to $15.50, representing a 12.77% gain. The stock has demonstrated significant volatility, with a 52‑week range of $4.66 to $24.35 and a year‑to‑date return of 1.81%. Over the past year, SERV has delivered impressive returns of 42.29%, substantially outperforming the S&P 500’s 17.43% gain during the same period. The company’s market capitalization stands at approximately $846 million, reflecting investor optimism about the autonomous delivery market’s potential.
However, financial metrics reveal the company remains in a growth phase with substantial operating losses. Serve reported revenue of just $1.48 million on a trailing twelve‑month basis, resulting in a net loss of $55.18 million and diluted earnings per share of –$1.05. The company maintains a strong balance sheet with $183.33 million in total cash and minimal debt, providing runway to scale operations. Analysts maintain an average price target of $17.40, suggesting approximately 26% upside from current levels. The company is looking to double its fleet to 2,000 robots by the end of 2025, and the dual‑platform strategy with both DoorDash and Uber could help reduce idle time and improve unit economics as it scales toward profitability.