Uber signs multi-year digital mapping deal with TomTom

By Money Times

Nov 16, 2015 08:55 PM EST

Uber Technologies Inc. announced that it has signed a global multi-year deal with the Dutch company TomTom to provide maps and traffic data to Uber for use in its navigation for Uber drivers.

TomTom's advanced maps and traffic data will be included in the mobile app used by Uber drivers, to ensure they have  seamless navigations experience, accurate arrival times and efficient journeys.

The partnership will cover more than 300 cities around the world, according to Bloomberg.

In a report by TechCrunch, TomTom's managing director for Maps & Licensing Charles Cautley said that the company is excited to provide Uber with its best in class location data. 

He stated that TomTom is a truly independent map provider with the platform for the future. It provides innovative and future proof location technology for global automotive and consumer technology industry.

While Uber's Head of Product Partnerships Matt Wyndowe said that TomTom's mapping and traffic data will help Uber to continue providing a great experience for drivers everywhere.

Uber spokesperson confirmed that TomTom will be providing data only for the driving app. The partnership will not replace Google Maps or any other services that Uber currently uses.

Uber uses TomTom's data as part of the source mix including Google Maps. The mix also includes Uber's own mapping assets which include Microsoft's Bing mapping assets and startup deCarta.

Earlier this year, Uber acquired a part of Microsoft's Bing mapping assets along with 100 of its engineers, as pointed out in Venture Beat. And it has largely relied on Google Maps until now.

The partnership will also benefit TomTom for the high margin revenue that it can generate. The company is in the pole position to profit from the additional growth.

TomTom, the global company with digital map assets, has been targeted by companies ranging from technology firms, social networks and e-commerce provider, to car manufacturers.

The Dutch company has been in strict competition with its rivals including Google Maps and Here, Nokia's former mapping unit which is now owned by a group of German carmakers Volkswagen, BMW, and Daimler.

TomTom provides mapping data which is strong in urban areas. The company works with number of third parties as well as use the mapping data for its own range of GPS navigation hardware. It started to work with Apple as one of several partners on its native maps app.

Shares for TomTom rose over 5% after the partnership with Uber announced. The company shares valued at around €2.44 billion ($2.6 billion).

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