Shake Shack in LA Hires Robots for Delivery

Shake Shack has announced a partnership with Serve Robotics to introduce autonomous delivery robots in Los Angeles, allowing customers to receive their meals via the Uber Eats app. The robots, resembling shopping carts and equipped with four wheels, will navigate sidewalks to deliver food. Serve Robotics, which originated as the robotics division of Postmates before being spun off in 2021, went public in April 2024 and has attracted investments from notable companies including Nvidia and 7-Eleven. According to Serve Robotics co-founder and CEO Ali Kashani, these robots are particularly effective for short-distance deliveries, typically covering about a mile. He emphasized that the robots are more suited for urban environments compared to driverless cars, enhancing delivery efficiency and reducing costs. Despite the promise of automation, challenges remain in fully replacing human workers, as evidenced by the slow adoption of drone delivery services backed by major corporations like Amazon and Walmart. The company has ambitious plans, with an agreement to deploy 2,000 robots on the Uber Eats platform by 2025. However, as of the latest earnings report, Serve Robotics averaged only 48 active robots for daily deliveries in the second quarter of 2024, a modest increase from 23 in the same period the previous year. Looking ahead, Kashani mentioned potential expansion into other cities, including Dallas, San Diego, and Vancouver, Canada, as the company seeks to scale its operations.