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UBER Spins Out Postmates Robotics Division Into New Company

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Per a TechCrunch report, Uber Technologies, Inc. (UBER - Free Report) has spun out Postmates X, the robotics division of delivery startup Postmates, which it acquired in December 2020.

Postmates X has spun off as an independent company called Serve Robotics. The company has raised seed funding, led by venture capital firm Neo. Some of the other investors include Uber, Long Journey Ventures, Western Technology Investment and Postmates co-founders Bastian Lehmann and Sean Plaice, among others.

The TechCrunch report stated that Serve Robotics would continue to be run by its previous head and leader of the serve program, Ali Kashani. The company is set to start operations with 60 employees and will be headquartered in San Francisco, CA.

The spin-off is in line with Uber’s strategy to shed side businesses and focus on its profitability goal. Notably, the company expects to reap profits on an adjusted EBITDA basis by the end of 2021. In January, the company sold its flying taxi unit, Uber Elevate, to Joby Aviation. As part of the deal, Uber has invested $75 million in Joby. In the same month, it also offloaded its self-driving unit, Advanced Technologies Group or ATG, to Aurora Innovation. Uber has invested $400 million in Aurora to get a 26% stake in the company.

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