SK Telecom on Friday announced that it would spin-off its mobility platform business, tentatively called T map Mobility, as a separate entity to enter into a partnership with U.S.-based ride-hailing company Uber Technologies. The move aims to strengthen SK Telecom’s reach in the connected mobility sector.
In a regulatory filing, SK Telecom said that T map Mobility would become a separate company on December 29. The wholly-owned spin-off firm would take over the mobile carrier’s mobility services, including its taxi-calling service T map Taxi, and navigation service platform called T map.
SK Telecom agreed that the new company would set up a joint venture with the Uber by the first half of next year.
Strategic Investment to Lead Future Mobility
Uber said that it would inject 114.2 billion won ($100 million) into the joint venture to focus on ride-hailing services. Uber also said that it would also invest 57.1 billion won ($50 million) into T map Mobility. The carrier said that Uber’s investment would strengthen the strategic partnership between the two companies.
SK Telecom expects the partnership with Uber would create an innovative taxi-hailing service using T map combined with Uber’s global experience and platform technology. The mobile carrier added that it targets to increase T map’s value to 4.5 trillion won ($3.9 billion) by 2025.
T map currently has over 12.5 million monthly active users, while its taxi-hailing service has amassed 750,000 monthly users.
“Together with Uber, the world’s top mobility platform company, we will turn customers’ time and money spent on mobility into time used for more valuable purposes and realize greater safety for all modes of transportation.”
– Park Jung-ho, CEO of SK Telecom
SK Telecom said that the joint venture would also develop various mobility services such as in-vehicle infotainment and usage-based insurance. Through the joint venture, the company aims to lead the future mobility industry.
Check out other must-read articles from koreaTechToday:
- SoCar Becomes First Mobility Startup Unicorn After 60Bln Won Funding
- Samsung, Hyundai to Partner in Future Mobility Biz Beyond EV Battery
- SK Telecom Hosts “ai.x 2020 conference: Human.Machine.Experience.Together”
- South Korea to Speed up Commercialization of Urban Air Mobility by 2025
