Uber Technologies, Inc. (NYSE: UBER) is planning to spin off the delivery robot operation of Postmates and is intending to start a new startup. This decision has highlighted another effort of the firm to make its ride-hailing business more profitable. The new delivery startup of Uber will be, Serve Robotics.

Uber will be the ill co-leader of nearly $50 million investment in the new delivery startup. The new start aimed to provide food, necessary goods, and groceries to the customers of Uber without the interference of humans. As per the reports, the minority stakeholder in the new startup is UBER.

The manager and leader of the new startup will be Ali Kashani. Uber has bought Ali Kashani last year. As per the report, the new startup of UBER will commence its operation with only 60 employees and will have it headquarter in San Francisco. The new startup of UBER will work independently without the interference of Uber.

The decision has been taken by Uber as it races toward a self-enforced profitability target at the end of this year. CEO Dara has recently reduced thousands of jobs and has dumped a series of experimental projects. Those projects which the firm has dumped off included the self-driving vehicle group, which was consuming nearly $500 million a year, and the flying cars unit of the firm.

Despite taking a few bold steps firm has ensured that it has its hand on the latest technologies and the news of a new startup is the proof of that. Serve Robotics will commence with the small collection of Postmates robots that can now be seen carrying food around LA. But Kashani thinks that Serve robots could make 5% of food shipments in the U.S. within five years. The firm will continue to make supplies through a continuing agreement with Postmates.