Company: SERV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001832483-25-000089
Chunk: 114

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 114
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 and Uber Technologies, Inc. (“Uber”). 

For the three months ended June 30, 2025 and 2024, sales to Magna accounted for 39% and 63% of our total revenue, respectively.  For the six months ended June 30, 2025 and 2024, sales to Magna accounted for 46% and 81% of our total revenue, respectively. 

For the three months ended June 30, 2025 and 2024, sales to Uber accounted for 31% and 30% of our total revenue, respectively.  For the six months ended June 30, 2025 and 2024, sales to Uber accounted for 29% and 13% of our total revenue, respectively. 

As of June 30, 2025, Magna accounted for 81% of our accounts receivable. As of December 31, 2024, Customer C and Uber accounted for 86% and 12% of our accounts receivable, respectively.

There are inherent risks whenever a large percentage of total revenues and accounts receivable are concentrated with a limited number of customers. The loss of either or both of these customers could have a negative impact on our planned operations.

Inflation and Market Considerations; Availability of Materials, Labor & Services.

We consider most on-demand purchases as discretionary spending for consumers, and we are therefore susceptible to changes in discretionary spending patterns and economic slowdowns in the geographic areas in which merchants on our partners’ platforms operate and in the economy at large. Discretionary consumer spending can be impacted by general economic conditions, unemployment, consumer debt, inflation, gasoline prices, interest rates, consumer confidence and other macroeconomic factors. Inflation can lead to increased cost of material and labor for restaurants and merchants who may in turn raise prices on the items they sell and result in a reduction in demand for those items. To the extent inflation reduces economic activity and consumer demand for items we deliver, it could negatively impact our financial results. Continued uncertainty in or a worsening of the economy, generally or in a number of our markets, and consumers’ reactions to these trends could adversely affect our business and cause us to, among other things, reduce the number and frequency of new market openings or cease operations in existing markets. It is important to note, however, that inflation can also serve as a tailwind that would accelerate the adoption of automated robotic last-mile delivery as labor becomes more expensive and drives up the cost of delivery by humans.