uber

Source: http://bgr.com/2015/07/10/uber-driver-threatens-violence/

Since Uber lost out on a potential $3 billion joint-bid on Nokia’s mapping business, they set out to find more potential services. On November 12, 2015, they announced that they had struck a multi-year deal with TomTom.

tomtom

Source: http://www.htxt.co.za/2015/03/04/directions-just-became-free-with-tomtoms-mobile-app/

TomTom is a navigation company based out of the Netherlands. They have a full range of GPS devices and have recently branched off to a golf watch and into the expanding fitness watch market.

fitnesswatch

Source: http://iancorless.org/2013/08/01/tomtom-launch-new-gps-products/

Although the details of the deal were not disclosed, Uber said that they plan to use the data from TomTom to further enhance the navigation system that Uber’s drivers currently have access to. Currently they also have access to Google Maps along with other mapping assets that Uber has acquired.

googlemaps

Source: http://neurogadget.com/2015/08/06/download-free-google-maps-for-free-directions/11661

This deal seems very interesting because I feel the TomTom does not gain that much from this deal. They are not the exclusive provider to Uber and ultimately, the driver will have the final choice in choosing the navigation system. The GPS system will not be available for the customers so TomTom will not be reaching out to a massive audience. My opinion is that they have received a very large compensation. If Uber was willing to pay $3 billion for the Nokia product, they must have paid a substantial amount to have access to TomTom’s data.

tomtomdevice

Source: http://www.packworld.com/contract-packaging/end-user-profile/kitting-logistics-help-tomtom-navigate-challenging-seas

From Uber’s point of view, this is a short-term fix as they look for a navigation solution. They need to create a reliable system to allow drivers to transport the customers in a fast, efficient, and safe way. I believe that Uber will find a solution to this within the next 5 years.

 

Works Cited:

Lunden, Ingrid. “Uber Adds TomTom Navigation Data To Its Driver App, Not Replacing Google Maps.” TechCrunch. TechCrunch, 12 Nov. 2015. Web. 18 Nov. 2015. <http://techcrunch.com/2015/11/12/uber-adds-tomtom-navigation-data-to-its-driver-app-not-replacing-google-maps/>.
Toor, Amar. “Uber Partners with TomTom after failing to Acquire Nokia’s Maps.” The Verge. The Verge, 12 Nov. 2015. Web. 18 Nov. 2015. <http://www.theverge.com/2015/11/12/9720780/uber-tomtom-mapping-traffic-partnership>.