Serve Robotics, the sidewalk delivery robot company backed by Nvidia and Uber, is branching out into healthcare with the acquisition of Diligent Robotics, a startup specializing in hospital assistant robots. The deal, announced Tuesday, values Diligent Robotics' common stock at $29 million, marking Serve's first expansion beyond its core food-delivery business.

Diligent Robotics, founded in 2017 by Andrea Thomaz and Vivian Chu, had raised over $75 million in venture capital, including a $25 million funding round in 2023. Their flagship robot, Moxi, is designed to assist hospital staff by delivering lab samples, supplies, and handling other logistical tasks. This acquisition provides Serve Robotics with a foothold in the rapidly growing healthcare robotics market, estimated to be worth billions of dollars. The move positions Serve to capitalize on the increasing demand for automation solutions within hospitals and other healthcare facilities, driven by labor shortages and the need for improved efficiency.

Serve Robotics' entry into healthcare reflects a broader trend of delivery companies seeking diversification to expand their market reach and revenue streams. While the company initially focused on sidewalk food delivery, CEO Ali Kashani views the acquisition as aligned with Serve's core competency in last-mile delivery. The company believes Moxi's functionality fits squarely within this thesis.

Serve Robotics has an interesting history. It was incubated within Postmates in 2017 and continued under Uber's ownership after the acquisition of Postmates. In April 2024, Serve Robotics went public through a reverse merger, highlighting its ambition to scale its operations and explore new market opportunities.

The acquisition of Diligent Robotics signals Serve's intent to become a broader player in the robotics and logistics space. By leveraging its expertise in autonomous navigation and delivery, Serve aims to address the growing need for automation solutions across various industries, starting with healthcare. The company's success will depend on its ability to integrate Diligent Robotics' technology and expertise, navigate the complexities of the healthcare market, and demonstrate the value proposition of its robotic solutions to hospitals and other healthcare providers.