Uber Technologies (Uber) has completely sold off its stake in long-time partner Serve Robotics Inc., marking a major setback in its strategy to advance autonomous services on its platform, as the two companies clashed over the deployment of delivery robots. Serve Robotics produces those four-wheeled robots with the distinctive "deer-eye" look that navigate sidewalks in cities like Los Angeles, Miami, and Chicago. Since being spun off from the delivery app Postmates, which Uber acquired in 2020, Serve has relied on Uber as a key investor. From at least early 2025, Uber has been steadily reducing its stake in Serve while boosting investments in other companies aligned with its long-term vision, including robotaxi firms.

In a regulatory filing last Friday, Uber disclosed that it had completely liquidated its remaining shares of Serve in the second quarter. That same quarter, an Uber executive resigned from the Serve board. Serve stated at the time that the resignation was not due to any disagreements with the company. This move highlights the growing challenges Uber faces in positioning itself as a combined ride-hailing and delivery platform integrating autonomous vehicles and robots. Collaborating with partners requires delicate negotiations over customer relationship ownership and user experience responsibility, which can 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. subsidiary seeks to offer direct mobility services through its own app in more markets. Uber's rationale for a partnership model, rather than developing its own autonomous vehicles, is that it is more efficient to work with companies developing robotaxis, sidewalk robots, drones, and charging infrastructure, and to invest in most of them. However, a mature profit model for this emerging technology has yet to materialize. Uber has indicated it is willing to tolerate some losses as it expands these new services over the coming years.

Just a day before Uber disclosed its stake liquidation, Serve Robotics CEO Ali Kashani told investors during an earnings call that the company does not plan to renew its partnership agreement with Uber when it expires in early 2027. Quarterly deliveries made through the Uber platform, which had been growing since the two companies began collaborating in multiple cities in 2022, declined for the first time, prompting Serve Robotics to slash its full-year revenue outlook by more than half. Kashani stated on the call: "Since this trend emerged in the second quarter, we have had extensive discussions with Uber. Ultimately, it became clear that we have a fundamental disagreement on the operating model for scaling a shared autonomous fleet." He added that the disagreement involves areas such as fleet coordination and merchant integration. Kashani noted that Serve Robotics' experience with other partners, including Uber competitor DoorDash Inc., "shows that aligning on integration and operating models can indeed yield better results from the same underlying technology and fleet." He also told investors last week that the decision to end the relationship with Uber was made "recently." An Uber spokesperson declined to comment on whether the company would renew its partnership with Serve. Privately, Uber and Serve have been blaming each other for operational issues.

According to sources familiar with the matter, Uber provided fewer orders to Serve Robotics in the second quarter than in the first quarter. One source said that due to the low order volume, Serve could not economically justify expanding its fleet size. Company filings show that during this period, Serve Robotics' daily active robots declined for the first time, dropping to 792 from 812 in the previous quarter, while the hours its robots were on standby, ready to accept orders and perform deliveries, fell 4.7% quarter-over-quarter. One source said Uber expressed concerns about Serve Robotics' operational performance and reliability as it expanded into new markets this year, which affected the number of orders it could receive and complete. On one occasion, a Serve Robotics robot collided with a bus stop in Chicago, generating widespread negative news. The source also said that Serve Robotics would reject orders if it could not complete deliveries within the customer's expected timeframe. Serve Robotics shared its estimated time of arrival (ETA) with Uber, but Uber has historically been inaccurate in displaying this to customers, leaving insufficient time for the robots to complete orders.

After selling its stake in Serve Robotics, Uber still has four other robot suppliers: Coco Robotics, backed by Sam Altman; Avride, supported by Nebius Group NV; Starship Technologies Inc.; and Cartken. An Uber spokesperson said the company remains committed to providing autonomous delivery services with partners, including drone manufacturer Flytrex. Uber ended a delivery pilot project with Waymo in Phoenix last May, stating: "We will continue to work closely with an increasing number of partners to deliver the convenience and reliability our customers expect." As for Serve Robotics itself, it began expanding beyond sidewalk delivery earlier this year by acquiring Diligent Robotics Inc., which develops indoor robots for assisting hospital staff. Kashani told investors on last week's earnings call that he values the partnership with Uber and that Serve Robotics remains "engaged with Uber" and "open to finding a path to continue working together." However, he ultimately concluded: "We need to focus our resources on areas where we believe we can achieve the highest utilization and operational leverage."