Magna to manufacture more Serve Robotics last-mile delivery systems

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Magna International will manufacture more Serve delivery robots.

Magna International will manufacture more delivery robots. Source: Serve Robotics

Serve Robotics Inc. today said it has expanded its existing partnership with Magna International Inc. to increase production of Serve’s sidewalk delivery robots. Under the terms of the new production and purchase agreement, Magna is the exclusive contract manufacturer of Serve’s autonomous systems, supporting its plan to deploy up to 2,000 robots on the Uber Eats platform across multiple U.S. markets.

“Magna is excited to continue collaborating with Serve, leveraging our manufacturing and technical expertise to help fuel Serve’s growth potential,” stated Matteo Del Sorbo, executive vice president for New Mobility globally at Magna.

Aurora, Ontario-based Magna is one of the world’s largest automotive suppliers. The new agreement extends a previously disclosed agreement effective Feb. 20, under which Serve granted the company a non-exclusive license to its technologies and expertise, enabling Magna to further develop new products in the robotics and logistics space.

Serve Robotics builds on IPO

The announcement came less than a week after Serve Robotics went public, raising $40 million.

“Serve is a leader in creating robots that navigate complex human environments,” said Ali Kashani, CEO of Serve Robotics. “Following our successful public offering, we are excited to start working to scale our robotic fleet with Magna’s world-class manufacturing capabilities.”

“This collaboration supports the natural progression of our business beyond food delivery and positions our proprietary robotics technology as a platform upon which new robots can be built,” he added. “Magna is a valuable partner in this effort.”

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Investors, customers fuel delivery robot rollout

Redwood City, Calif.-based Serve Robotics spun out of Uber Technologies Inc. in 2021. The company claimed that its low-emissions robots using artificial intelligence for Level 4 autonomy will make delivery more sustainable and economical. It has backing from NVIDIA and Uber subsidiary Postmates, among others.

Since 2022, Serve said it has completed thousands of deliveries for customers including Walmart, 7-Eleven, and Uber Eats. The company offers its mobile robots through a robots-as-a-service (RaaS) model.

The global market for robotic last-mile delivery could grow from $70 million in 2022 to $670 million by 2030, predicted ABI Research. It attributed this expansion to labor and vehicle costs, improving autonomy technologies, inflation, and consumer expectations of rapid service.

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