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Autonomous Robots: The Future of Last-Mile Delivery?

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Serve Robotics is paving the way for a revolution in urban logistics by using autonomous robots to streamline the pickup and delivery of food and other goods—significantly cutting the cost of the final leg of delivery.

CEO Ali Kashani of Serve Robotics envisions these self-driving bots transforming city logistics. This year, the company plans to roll out 2,000 Uber Eats delivery robots, further expanding their operations in Los Angeles and targeting deployments in Dallas and additional cities. Originally part of Postmates and spun out after Uber’s 2020 acquisition of Postmates, Serve Robotics has already forged key partnerships with Uber Eats and Shake Shack for Los Angeles deliveries.

Currently, these delivery robots are active in several Los Angeles neighborhoods, navigating sidewalks to collect food orders from around 900 restaurants. They operate within a two-mile radius—extending up to six miles when integrated with drone handoffs. Last October, a collaboration with Wing, a drone delivery firm, led to a system where a Serve bot transports food curbside to an “autoloader” that then launches a drone to deliver orders up to six miles away, all within 30 minutes.

Research from PYMNTS Intelligence indicates that robotic delivery is most appealing to millennials, Gen Z, and consumers with incomes over $100,000. Yet, Kashani sees broader applications beyond takeout. He suggests that these robots could soon be used for delivering medications, pharmacy items, parcels, and groceries. Moreover, Kashani foresees “reverse logistics” where the same bots handle product returns and even local commerce—for example, delivering clothing for a try-on, with customers returning items they decide against purchasing. This flexibility, he explains, dramatically reduces last-mile delivery costs.

Uber CEO Dara Khosrowshahi has noted that Serve’s robots are a more cost-effective alternative to human couriers, even though each bot currently handles one order at a time to ensure speedy deliveries. However, there is potential for handling multiple orders in the future. Founded in 2017 as part of Postmates and now the largest provider in its category, Serve Robotics went public on Nasdaq in April 2024.

Each morning, Serve’s robots depart from city depots and position themselves near busy areas with high restaurant density. When an order comes in, a nearby restaurant staff member loads the food into the bot, which then delivers the order—typically within 18 minutes. Customers can track the robot’s progress via an app and simply tap a button to unlock the bot upon arrival. Kashani emphasizes the simplicity of this process, noting that users can operate the robots without any special onboarding.

Beyond convenience, these robots offer a reliable alternative to human couriers by reducing errors and ensuring that food is delivered untouched. Kashani mentioned an incident where someone attempted to commandeer a bot; the robot managed to escape by leaping from a truck and returning to its depot—a moment he even shared on social media.

Technologically, Serve’s bots have achieved Level 4 autonomy, meaning they can operate independently within designated areas—similar to Google’s Waymo robotaxis, and far more advanced than Tesla’s Level 2 Full Self Driving feature. Both Serve and Waymo employ LiDAR technology to create precise 3D maps of their surroundings, whereas Tesla relies on cameras and neural networks. Kashani argues that these robots are inherently safer than cars due to their lighter weight and slower speeds, with significantly less kinetic energy even if a collision occurs.

While the bots can pause and request remote assistance when needed—such as when encountering road construction—human oversight remains essential, especially when navigating complex intersections. Kashani is confident that even as the technology evolves, human workers will continue to complement robotic systems. As Serve Robotics expands, the resulting lower delivery costs are expected to boost market growth and ultimately create more jobs.

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