Uber is reportedly planning to spin out the robotic delivery service of Postmates known as Postmates X. The unit is now seeking bids from investors to establish itself as a separate company named “Serve Robotics”.

The new company would be led by Ali Kashani,  the current head of Postmates X, who also leads its autonomous delivery “Serve” robotics program.

Uber plans to retain equity ownership of around 25% in Serve Robotics and maintain a commercial agreement with the startup. The startup would receive its IP and assets in exchange.

Postmates Serve is an autonomous delivery droid that travels via sidewalks using a combination of LiDAR, sonar, computer vision, time-of-flight cameras, and GPS to navigate. It is roughly 3 ft. tall and can carry up to 50 lbs in its compartment over a 2-mile radius. In December 2020, the unit launched trial deliveries in a partnership with Pink Dot, an online grocery and essentials store in West Hollywood, California.