Years of Cooperation Collapse! Uber (UBER.US) Liquidates All Shares of Serve Robotics (SERV.US), Divergence in Delivery Robot Deployment

According to the Zhihui Finance APP, Uber Technologies (UBER.US) has completely liquidated its holdings in long-term partner Serve Robotics Inc. (SERV.US) due to serious disagreements over how to deploy delivery robots. This development marks another setback in Uber’s overall strategy to advance autonomous services on its platform.

Serve Robotics produces boxy, four-wheeled robots with “doe eyes” that navigate sidewalks in cities such as Los Angeles, Miami, and Chicago. Since Postmates, the delivery app acquired by ride-hailing giant Uber in 2020, spun off as an independent entity, Serve has regarded Uber as a key investor.

From at least early 2025, Uber has been gradually reducing its stake in Serve while ramping up investments in other companies that align with its long-term strategy, including those in the robotaxi sector. In a regulatory filing last Friday, Uber disclosed that it had entirely sold off its Serve shares in the second quarter. During the same period, an Uber executive resigned from Serve’s board of directors. At the time, Serve stated that the resignation was not due to any disagreement with the company.

This move highlights the increasingly tough challenges Uber faces as it attempts to become an aggregator of autonomous vehicles and robots for ride-hailing and delivery services. Collaborating with partners requires delicate negotiations over customer ownership and responsibility for the user experience—issues that often take years to resolve. Last month, Uber announced that its exclusive partnership with robotaxi provider Waymo would end in early 2028, as the Alphabet Inc.-owned company seeks to offer ride services directly in more markets via its own app.

Uber advocates for a partnership model instead of in-house autonomous vehicle development, arguing that collaborating with—and often investing in—companies that develop robotaxis, sidewalk robots, drones, and charging infrastructure is more efficient. However, the commercialization of this emerging technology still lacks a mature profit model. Uber has stated that as it expands these new services over the next few years, it is willing to accept a certain level of losses.

The day before Uber disclosed its exit from Serve, Serve CEO Ali Kashani told investors on an earnings call that the company did not plan to renew its agreement with Uber when it expires in early 2027. For the first time since the companies began multi-city collaborations in 2022, the quarterly delivery volume via Uber’s platform declined, prompting Serve to sharply cut its full-year revenue outlook by more than half.

“Since this trend emerged in the second quarter, we have had extensive discussions with Uber, and it has become clear that there are fundamental differences between us regarding the expansion model for the shared autonomous vehicle fleet,” Kashani said on the call. He added that the disagreements cover areas such as fleet coordination and merchant integration. He noted that Serve’s experience with other partners—including Uber’s competitor DoorDash Inc.—“shows that reaching consensus on integration and operational models produces better results from the same underlying technology and fleet.”

Kashani also told investors last week that the decision to end the relationship with Uber was made only “recently.” An Uber spokesperson declined to comment on whether the company would renew its partnership with Serve. Privately, Uber and Serve have blamed each other for operational issues.

According to sources familiar with the matter, the number of orders Uber sent to Serve in the second quarter was lower than in the first. One source said Serve could not economically justify expanding its robot fleet further given the low volume. Company documents show that during this period, Serve’s number of daily active robots declined for the first time, dropping to 792 from 812 the previous quarter, and robot operating hours—when they were ready to accept orders and complete deliveries—fell 4.7% quarter-on-quarter.

One source said Uber expressed concerns over Serve’s operational performance and reliability when expanding to new markets this year, which affected the number of orders Serve could receive and fulfill. On one occasion, a Serve robot collided with a Chicago bus shelter, resulting in widely circulated negative news. The source added that if Serve cannot meet the customer’s expected delivery time, it refuses to accept the order. Serve shares the robot's Estimated Time of Arrival (ETA) with Uber, but Uber is known for not displaying accurate information to customers, resulting in too narrow a window for robots to complete orders.

After selling off Serve, Uber still works with four other robot suppliers: Coco Robotics, backed by Sam Altman; Avride, backed by Nebius Group NV; Starship Technologies Inc.; and Cartken. An Uber spokesperson stated the company remains committed to autonomous delivery services through partners including drone maker Flytrex. Uber ended its pilot delivery project with Waymo in Phoenix last May and stated: “We will continue to work closely with more and more partners to provide the convenience and reliability customers expect.”

As for Serve, earlier this year it began expanding beyond sidewalk delivery through the acquisition of Diligent Robotics Inc., which develops indoor robots to assist hospital staff. On last week’s earnings call, Kashani told investors he values the relationship with Uber, and Serve is still “in contact with Uber” and “open to finding ways to continue the collaboration.” However, he ultimately said: “We need to focus our resources on areas we believe are most likely to achieve high utilization and operating leverage.”