More Problems at Serve Robotics (SERV)
Serve Robotics (NASDAQ: SERV — $734 million) is an experimental company testing self-driving robots for food delivery on the sidewalks of cities including Los Angeles, Miami, and Chicago, among others.
In December, The Bear Cave published “Problems at Serve Robotics (SERV)” and wrote, in part,
“The company lost about $80 million on $2 million in revenue over the last twelve months, and its stock has about $100 million in average daily trading volume.
The Bear Cave believes Serve Robotics is a well-intentioned experiment with poor economics and a subpar solution for last-mile delivery.”
Investors and analysts expect the company to scale revenue 10x in 2026 and become a change agent in last-mile delivery.
The Bear Cave believes any growth will fall short of investor expectations for three reasons. First, residents do not like sidewalk delivery robots and are pressuring politicians to block their expansion. Second, Serve’s robots often perform poorly or illegally in traffic, including by blocking cars, firetrucks, trains, and the disabled. Third, several restaurants contacted by The Bear Cave have dropped Serve as a partner or not scaled beyond initial testing. In short, The Bear Cave believes 2026 will be the year reality erodes expectations for Serve shareholders.
In September 2025, Serve announced it was bringing its fleet of sidewalk robots to Chicago for food delivery, saying in part:
“Chicago offers the ideal environment for sidewalk delivery with its extensive pedestrian infrastructure, vibrant dining scene, and culture of innovation. Serve has worked closely with local partners and community stakeholders to ensure its robots integrate seamlessly into Chicago’s forward-looking and food-loving community.”
Petitions quickly began circulating against Serve Robotics and its competitor, Coco Robotics. One website, “NoSidewalkBots.org”, uses the tagline, “Chicago sidewalks are for people, not delivery robots.” The website, started by Lincoln Park resident Josh Robertson, has garnered over 3,400 signatories against sidewalk robots. The website also encourages residents to file complaints through Chicago’s 311 portal.
Another Chicago resident observed that over time “the robots have arguably gone from novelty to nuisance.”
Politicians are taking note. Alderman Daniel La Spata, who chairs the Committee on Pedestrian and Traffic Safety, surveyed residents earlier this year about the sidewalk robots and concluded that Serve and Coco should not have a long-term presence in the city. The Block Club of Chicago reported last month:
“Companies operating food delivery robots will not be allowed to expand across parts of Wicker Park and Logan Square following overwhelmingly negative feedback from neighbors, the local alderman said Monday.
Last week, Ald. Daniel La Spata’s (1st) office hosted a community meeting with representatives from Coco and Serve Robotics, two food delivery robot companies seeking to operate their vehicles across the entire 1st Ward…
Almost 500 1st Ward residents replied to an online survey distributed by La Spata’s office, with almost all of the respondents opposing the expansion. More than 83 percent said they ‘strongly disagreed’ that the robots should be allowed to operate across the ward, according to numbers provided by La Spata.
The existing robot delivery pilot will not be extended past May 2027 without City Council approval, according to the city’s website.” (Emphasis ours.)
Chicago residents have documented their frustrations on social media. In one case, a resident showed a Serve robot stuck in a small amount of snow and helped push the robot out.
In the replies to one December 2025 post about the sidewalk robots, Chicago residents wrote:
“I’m a furniture rep in Fulton Market and often lug a big cart of furniture around the area. The amount of times these things have been blocking the ramps from sidewalk to road and I have to maneuver my giant a** cart around them 🤦♀️”
“It’s a nightmare when walking dogs.”
“Nightmare for accessibility and surveillance and this is going to be awful with how snowy and icy the sidewalks are.”
“They get in the way, it’s hard to walk around them at intersections. Can’t imagine how more of a nuisance they are to people in wheelchairs or using a walker”
“I’ve seen two people exiting buildings nearly tripping over them as they pass at the same time the person exits the door.”
“I hate these things.”
In other cases, Serve’s food delivery robots have also blocked firetrucks, broken down on train tracks, harassed the disabled, and blocked oncoming traffic for minutes. For example, in January 2026, the Miami Brightline train needed to come to a complete stop after running over a Serve robot that had been broken down on the tracks for 15 minutes.
The Bear Cave also has doubts about the company’s success in testing with restaurants.