Shake Shack in Los Angeles has partnered with Serve Robotics to deliver meals through autonomous delivery robots via the Uber Eats app. The robot, shaped like a shopping cart with four wheels, will travel on sidewalks. Serve Robotics, founded as the robotics division of Postmates before being acquired by Uber, has seen an increase in its shares following the announcement of this partnership. These robots have been delivering food in Los Angeles since 2022 and are better suited for shorter distance deliveries in cities compared to driverless cars.
The robots not only reduce congestion and emissions but also accidents and fatalities, according to Serve Robotics CEO Ali Kashani. As companies face rising labor expenses and consumers grapple with higher dining costs, these robots offer increased efficiency and cost savings. Investors are excited about the potential of automated serving, even though there are challenges to fully replacing human workers with automation. Companies like Domino’s have experimented with pizza delivery robots, but still rely on human delivery drivers.
Uber Eats has also previously partnered with Cartken to launch robot delivery services in Miami and Fairfax, Virginia. Despite the backing of major companies like Amazon and Walmart, drone delivery services have not yet taken off as expected, indicating the continued necessity of human workers in the delivery industry. Serve Robotics has plans to expand its fleet of robots on the Uber Eats platform in 2025, despite currently having a relatively small number of robots in operation.
Cities like Los Angeles present unique challenges for robot delivery services, such as crowded sidewalks and the risk of theft. However, Serve Robotics boasts a high success rate of completing deliveries more than 99% of the time. The company is considering expanding to other cities such as Dallas, San Diego, and Vancouver, Canada. While there are hurdles to overcome in the implementation of robot deliveries, companies and investors continue to show a strong interest in the concept and are willing to take risks to make it successful.
