Uber Technologies Inc (NYSE:UBER) is channeling its efforts and resources in a deal that will see it spin out Postmates’ delivery robot operation. The company targets the establishment of a separate startup that will help boost its profits.

Uber to play a key role

Uber confirms that it will spearhead the efforts to establish the startup, a deal estimated to cost about $50 million. Serve Robotics as a startup will play a significant role in giving customers easy access to groceries, food, and other essential items. The beauty of the whole thing is the point that human intervention isn’t required at any moment.

Serve Robotics is set to have many shareholders, but Uber will have a minority stake.

It was a year ago that Uber acquired Postmates. The company continues looking for ways to maximize its profits and see the new startup as lucrative. Ali Kashani is the official in charge of Postmates’ robot deliveries, and he might be getting a promotion soon. The plan is to have Kashani lead the new startup.

Serve Robotics and its operations

Serve Robotics will kickstart its business operations with about 60 employees, though the number might rise with business expansion. Most of those employees will be San Francisco residents. Uber confirmed that the new startup would operate independently, free from any external influences and forces. However, the startup must maintain close ties with the parent company, as stipulated in the agreement.

Expansion efforts are currently underway, with the startup disclosing plans to increase its fleet of robots soon. It intends to increase the number from dozens to thousands to boost business operations significantly. Kashani remains optimistic about the future, outlining that the next five years will be transformative. The official sees a future where the delivery robots will become the order of the day.

Uber has the determination to succeed, and it is easy to tell, considering that it came up with its self-imposed profitability deadline. The business asserts that it is doing everything possible to b able to achieve its set goal towards the end of this year.

Uber’s Chief Executive Officer, Dara Khosrowshahi, supports the company in its quest to succeed, which is why he cut off thousands of jobs. The official also embarked on the sale of some of the company’s experimental projects.