Intel has announced its plan to acquire urban transit data startup Moovit for $900 million.
The Israeli company, which boasts 800 million users, is known for its public transit app that allows travellers to map out their journeys in 3,100 cities across 102 countries by combining public transportation, bicycle and scooter services, ride-hailing, and car-sharing information.
Intel says its acquisition of Moovit brings the company's Mobileye unit "closer to achieving its plan to become a complete mobility provider, including robotaxi services, which is forecast to be an estimated $160 billion opportunity by 2030."
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“Intel’s purpose is to create world-changing technology that enriches the lives of every person on Earth, and our Mobileye team delivers on that purpose every day,” said Bob Swan, Intel CEO.
“Mobileye’s ADAS technology is already improving the safety of millions of cars on the road, and Moovit accelerates their ability to truly revolutionize transportation – reducing congestion and saving lives – as a full-stack mobility provider.”
Intel's acquisition of Moovit comes after the chipmaker bought Mobileye, another Israel-based company, for $15.3 billion in 2017. Since, the company - which specialises in machine learning-powered advanced driverless technology and vision-based driver assistance system - has seen its revenues double, according to Intel, with its technology now used in 300 car models by 25 automakers.
Mobileye will use Moovit’s transportation data to improve its predictive technologies based on consumer demand and traffic patterns, as well tap into the company's transit data repository of more than 7,500 key transit agencies and operators.
4/5/20: Intel reportedly sets its sights on public transit app Moovit
Intel reportedly has its sights on purchasing public transit app developer Moovit for $1 billion.
Founded in 2012 and based in Ness Ziona, Israel, Moovit previously raised $133 million from various companies, including BRM Capital, Hanaco, BMW i Ventures, Sequoia Capital Israel and Vintage Investments Capital.
Those with insider knowledge of the talks spoke with Calcalist on the condition of anonymity and said the $1 billion deal is nearly complete. As usual with corporate buyouts, Intel and Moovit have declined to comment on the reports.
Moovit is best known for its mobile navigation app that provides users with real-time public transit information. The app is available for use in over 3,100 cities in 100 countries and boasts more than 720 million users, according to recent company statements.
In light of reduced worldwide public transit use amid the coronavirus outbreak, the Israeli startup changed its business model last month. In a blog post, the company shared it would use the On-Demand Transit platform, a transit changes deployment tracker, to ensure essential workers have access to emergency transportation during the coronavirus pandemic.
The Moovit acquisition won’t be the first time Intel has acquired an Israeli-based company. In March 2017, the tech giant also acquired Mobileye for $15.3 billion. The acquisition of Mobileye and Moovit would allow the formation of a large entity that controls mass amounts of data and can manage urban transportation, an ability that Intel appears to be pursuing.
