The Strategy Behind Intel's Acquisition of Mobility Player Moovit

The Strategy Behind Intel’s Acquisition of Mobility Player Moovit

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The Strategy Behind Intel's Acquisition of Mobility Player Moovit

The News: Intel Corporation today announced it has acquired Moovit, a mobility-as-a-service (MaaS) solutions company, for approximately $900 million ($840 million net of Intel Capital equity gain). Moovit is known for its urban mobility application that offers travelers around the world the best multimodal trip planning by combining public transportation, bicycle and scooter services, ride-hailing, and car-sharing. The addition of Moovit brings Intel’s Mobileye 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. Read the full news release from Intel.

Analyst Take: The growth of autonomous vehicles won’t happen in a vacuum and this is exactly why the acquisition of Moovit by Intel is such a sound diversification play for the company as it continues to see technology converge from its broad data centric strategy that starts in the data center but quickly extends beyond to the edge.

Moovit technology has an ecosystem friendly approach that takes a broad approach to transportation modes and the company has been well adopted and it will only see greater adoption in the wake of this acquisition and potential resources that can be put behind the tech by Intel.

Moovit Footprint Paris Well With Intel 

According to Intel, Moovit has more than 800 million users and services in 3,100 cities across 102 countries. In concert with Mobileye this becomes a one-two punch for autonomous vehicles (ADAS) and mobility data that will be required to truly develop smart(er) cities and connect the movement of billions of people around the world–It is this expanded reach and capability that Intel is acquiring and it will certainly provide an immediate boost to the company’s ambitions in this space.

Overall Impressions of the Moovit Acquisition

At first glance, the acquisition appears a perfect fit. With Moovit’s broad usage and Mobileye as one of the leaders in ADAS with 60 million vehicles and 25 automakers using the technology, there are significant opportunities for these two companies to come together to drive advancements in connected cities through its multimodal data capabilities that can serve both government and enterprise users.

For Intel, it will be important to watch the integration and communication of the acquisition to help both partners and shareholders understand the clear value that is being created through this acquisition.

Overall, a sound expansion to the portfolio in a rapidly growing area. It is this rapid expansion of the company’s capabilities that has expanded its total available market, which has materially separated it from its over-dependence on PC Silicon.

Futurum Research provides industry research and analysis. These columns are for educational purposes only and should not be considered in any way investment advice.

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Image: Intel

 

The original version of this article was first published on Futurum Research.

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. From Big Data to IoT to Cloud Computing, Newman makes the connections between business, people and tech that are required for companies to benefit most from their technology projects, which leads to his ideas regularly being cited in CIO.Com, CIO Review and hundreds of other sites across the world. A 5x Best Selling Author including his most recent “Building Dragons: Digital Transformation in the Experience Economy,” Daniel is also a Forbes, Entrepreneur and Huffington Post Contributor. MBA and Graduate Adjunct Professor, Daniel Newman is a Chicago Native and his speaking takes him around the world each year as he shares his vision of the role technology will play in our future.

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