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TomTom announces multi-year deal with Uber

TomTom, the Dutch navigation company, announced a multi-year deal with Uber, to bring its maps and traffic data to the ride-sharing app.

TomTom CEO Harold Goddijn said Uber had chosen the Dutch company because the ride-hailing app company wanted to have "total control" over its own products, Reuters said in a report posted Thursday.

"What they get from us is total control of their application," Goddijn said at the Morgan Stanley TMT conference in Barcelona. "Contrary to some of our competitors, we provide technology but also the raw data and databases to run" it, he said, adding that the deal relieved Uber of the need to "share sensitive information with other companies."

Financial details of the deal were not disclosed, and in a statement Uber said only it’s looking forward to working with TomTom.

After news of the deal broke out, TomTom’s shares were up 8.2 per cent in Amsterdam. Reuters says they have now more than doubled in a year. Goddijn said he expects TomTom to secure additional deals with carmakers in the future following the German carmakers' purchase of HERE.

"Basically from orders booked in 2014 and 2015, we can see that revenue in the licensing segment will grow very significantly in 2016 and 2017 and 2018," he said.

Nokia’s former digital mapping subsidiary HERE was acquired by Daimler, BMW and Audi in August, for the price of $3.1 billion (£2.04bn).

The Germans owning HERE will give other carmakers an “uncomfortable feeling”, says Goddijn.

"It think on that sentiment it is easier for us to get in front of (other carmakers) and discuss business" he said. "I think that will lead over time to more wins for us."