Intel Corporation yesterday has announced that it has acquired the Israeli company Moovit for approximately $900 million. Moovit has become quite popular in the past couple of years for providing real-time updates to ride-sharing service users. But why would Intel, a chipmaker spend a near billion on something like Moovit?
What Does Moovit Do
Founded in 2012, Moovit is an Israel-based firm that aims at combining the information from public transit operators and authorising with live information from the user community. Moovit’s goal was to bring this information to commuters and offer them a real-time picture of the best route for their journey. Today, Moovit enjoys a user base that is seven-times to what it was in 2018.
“We are excited to join forces with Mobileye and lead the future revolution of new mobility services.”Nir Erez, Moovit CEO
Moovit has also partnered with major ride-sharing operators and mobility ecosystem companies for analytics, routing, optimisation and operations for Mobility-as-a-Service (MaaS). So, in Moovit, Intel found a huge opportunity to leverage the analytics datasets to the benefit of Mobileye, another one of Intel’s lucrative acquisitions.
How Intel Benefits
Acquired by Intel in 2017, Mobileye has seen a phenomenal run with its revenues have doubled and is now the industry-leaders for providing vision-safety technology that aims to make roads safer, reduce traffic congestion, and save lives.
Mobileye has one of the unique business models that encompass the entire automated driving value chain, including the advanced driver-assistance systems (ADAS), conditional autonomy – also known as level 2+ – and the self-driving system (SDS) for robotaxis and consumer autonomous vehicles (AVs).
Mobileye can now use Moovit’s vast and diverse transportation datasets that consist of more than 7,500 key transit agencies and operators from a consumer base of more than 800 million users worldwide.
“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.”-Bob Swan, Intel CEO.
The addition of Moovit has brought Intel’s Mobileye closer than ever before to achieving its plan to become a complete mobility provider, including robotaxi services. Intel, however, said that Moovit will remain an independent subsidiary.
Future Of Transportation
The pursuit of fully autonomous vehicles has been elusive so far. Not because no one is trying but because of gigantic challenges the real world poses, which cannot be captured by existing datasets. Carmakers like Tesla are accumulating millions of miles of data to make their computer vision systems more accurate. However, we still are a long way from reaching this goal. Once full autonomy becomes a reality, then it will revolutionise the way we travel and most importantly, the way we live in the cities.
Car owners can rent their cars as robotaxis instead of wasting them in the parking lots. Ride-sharing service can get a lot easier. Since things get more scheduled, it can solve traffic problems, parking space problems and can launch a whole new industry. Robotaxis as a service is forecast to be a $160 billion opportunity by 2030.
The safety vision technology offered by companies like Mobileye is critical for people to rely on driverless vehicles.
Mobileye has industry’s most advanced vision sensing technology, crowd-sourced mapping capability and the Responsibility-Sensitive Safety (RSS) driving policy. With Moovit in its technology stack, Intel is going to be a key player in the future of transportation.