Serve Robotics Snaps Up Diligent Robotics In $29M All-Stock Deal: Why Investors Are Not Convinced

SERV stock plunged nearly 10% in regular hours after the deal announcement, and slipped further in extended trading.

• The acquisition marks Serve’s entry into the healthcare space, expanding beyond its core business of autonomous sidewalk delivery robots.
• Some investors appeared to be concerned about timing, given that Serve is loss-making.
• Stocktwits sentiment for SERV turned ‘bearish.’

Serve Robotics, Inc.’s stock plunged nearly 10% on Tuesday, its worst drop in two months, and continued to slip in extended trading as the company announced its acquisition of robotics startup Diligent Robotics for $29 million.

The deal marks Serve’s entry into the healthcare space, expanding beyond its core business of autonomous sidewalk delivery robots; however, some investors appear concerned about the timing, as Serve has yet to generate profit.

The transaction is expected to close in the first quarter of 2026, subject to conditions, following which Diligent will operate as a Serve subsidiary.

The move “accelerates Serve’s evolution from a robotic delivery company into a full-stack autonomy platform,” said Serve CEO Ali Kashani in a statement. Interestingly, both Serve’s and Diligent’s robots are built on and powered by Nvidia technology.

Retail’s Reaction

On Stocktwits, retail sentiment for SERV dropped to ‘bearish’ as of early Wednesday, from ‘neutral’ last Friday, though community members remained upbeat about the deal's long-term prospects. 

“$SERV I mean, typically the stock goes down when a company makes an acquisition as it depletes capital. So for a company that’s already unprofitable, it makes sense if we see a sell-off tomorrow,” said a user. “Long term, I think this company is going places.”

Does SERV Plus Diligent Unlock Good Value?

Diligent was founded in 2017 and sells autonomous service robots, primarily its flagship robot called Moxi, which assists healthcare staff by navigating hospital environments to deliver medications, lab samples, and supplies. The startup had raised over $100 million from investors including Tiger Global, Canaan, and True Ventures.

Moxi, deployed in over 25 U.S. hospitals, is powered by the Nvidia Jetson platform and trained on Nvidia’s Isaac Sim framework.

Serve Robotics has deployed over 2,000 sidewalk delivery robots, and its customers include Uber Eats, DoorDash, and 7-Eleven.

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