Serve Robotics Inc. announced a deal to acquire Diligent Robotics, Inc., a maker of AI‑powered mobile manipulators for hospitals, for $29 million in Serve common stock with an earn‑out of up to $5.3 million contingent on milestone achievement. The transaction, which is expected to close in the first quarter of 2026, will allow Serve to extend its Physical AI platform beyond sidewalk delivery into indoor, hospital environments where Diligent’s Moxi robot already operates in more than 25 U.S. facilities and has completed over 1.25 million deliveries.
The acquisition is a strategic pivot for Serve, which has spun out of Uber in 2021 and has built a fleet of 2,000 robots for last‑mile delivery. By adding Diligent’s socially intelligent robots and shared autonomy stack, Serve gains a new revenue stream from healthcare deployments that can generate $200,000 to $400,000 in annual sales per hospital. The deal also provides Serve with a rich data set from complex indoor environments, accelerating the development of its autonomous navigation algorithms and creating a more versatile AI flywheel that can operate both outdoors and indoors.
Management emphasized the complementary nature of the two companies. CEO Ali Kashani said the partnership would “share one autonomy stack, one data flywheel, and one operating system for robots that work alongside people across city sidewalks and critical institutions.” Andrea Thomaz, CEO of Diligent, added that the collaboration would “unlock the next phase of practical, real‑world robotics and advance a people‑plus‑robots model that prioritizes human impact.” The combined entity is positioned to become a leader in the growing robotics‑and‑AI market, where hospitals are increasingly adopting mobile manipulation solutions to improve logistics and patient care.
Despite the upside, Serve’s financial profile remains challenging. Analysts note that Serve’s gross profit remains deeply negative and that its annualized fleet revenue per daily active robot was only $5.6 k in Q3, far below the target level. Operating expenses for 2024 rose to $38.2 million from $19.2 million in 2023, reflecting heavy investment in growth initiatives. The acquisition is therefore a double‑edged sword: it offers diversification and data advantages, but it also adds cost and integration risk to a company still working to achieve profitable unit economics.
Market reaction to the announcement was positive, with the stock gaining 3.1 % in after‑hours trading on January 20. Investors were drawn to the strategic diversification into healthcare, the potential for new revenue streams, and the accelerated AI development enabled by Diligent’s data. However, the underlying financial headwinds—negative gross profit and high operating costs—remain a concern for long‑term investors.
The deal underscores a broader industry trend of robotics firms expanding into complementary verticals through acquisitions, aiming to create more versatile autonomous systems that can operate across diverse environments. For Serve, success will hinge on integrating Diligent’s technology, scaling the Moxi robot’s deployment, and improving utilization rates to move toward profitable unit economics.
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