Uber Strikes Digital Maps Deal With TomTom
13 November 2015 - 1:10AM
Dow Jones News
AMSTERDAM—Car-hailing service Uber Technologies Inc. has struck
a deal with Dutch navigation company TomTom NV to use digital maps
and traffic data for its smartphone application.
TomTom will provide users of the Uber driver app with digital
maps and traffic data in more than 300 cities around the world, the
Dutch company said Thursday. Financial details of the deal weren't
disclosed.
Uber said the deal with TomTom won't replace traffic information
it currently relies on and that it will continue to use a variety
of different sources for its Uber driver app, including Alphabet
Inc.'s Google mapping technology. "We have Google, Apple and now
TomTom", a spokesman said.
Uber is seeking to bolster its mapping capabilities to speed up
its global expansion and as it develops new automotive
technologies, such as self-driving cars. Earlier this year, The
Wall Street Journal reported that Uber submitted a bid to acquire
Nokia Corp.'s digital mapping business, Here, which was eventually
bought by a group of German car makers for around €2.5 billion
($2.7 billion).
SNS Securities analyst Martijn den Drijver said TomTom made Uber
an offer "which was probably more attractive than paying [€2.5
billion] or more for maps and traffic," in a reference to Uber's
bid for Nokia Here. The contract is a big win for TomTom as the
company could also benefit from Uber's plan to expand to other
markets, Mr. den Drijver said.
TomTom is one of the last remaining independent providers of
digital maps. Analysts have said this could make the Dutch company
a potential takeover target for car makers and technology companies
seeking to develop self-driving cars.
Shares in TomTom rose nearly 8% in Amsterdam on Thursday, having
risen more than 100% so far this year.
Write to Ellen Proper at Ellen.Proper@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 12, 2015 08:55 ET (13:55 GMT)
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