Bonitas Research short Serve Robotics, sees stock ‘going significantly lower’

In a recently published report, Bonitas Research says it is short Serve Robotics (SERV). The company generates revenues by charging clients for the use of its sidewalk robots to facilitate food deliveries, primarily for Uber Eats (UBER) in Los Angeles California, the report reads. “On November 7, 2024, Serve announced it would acquire Vebu, an automation incubator founded by Serve’s director James Buckly Jordan. We were surprised by the deal because Vebu has a history of launching failed prototypes, and its primary commercial robot is used to cut and peel avocados rather than delivering food. To us, Serve’s business failed to generate commercial interest so Serve used the Vebu acquisition to unjustly enrich insiders at the expense of SERV shareholders,” Bonitas argues. “Serve faces significant competition for last-mile delivery and falls behind on its hyped competitive advantages… With little/no commercial interest (including from related parties), a significant cash burn and a low probability of scaling up to 2,000 robots by CYE’25, we are short SERV and think its stock is going significantly lower.” Shares of Serve are down about 2% in pre-market trading.