Intel announced today the acquisition of Moovit. This acquisition represents an investment of approximately $900 million to integrate the entire company into its ecosystem. But what has Intel seen in this Israeli company to pay so much?
Moovit will become part of Intel as an independent subsidiary, allowing it to continue to operate its core business for users. It will also integrate its technology into Mobileeye, another Intel subsidiary that was acquired in 2017 for $15.3 billion. Also Israeli and with a similar activity: transport services.
Moovit is a public transport app that allows users to easily find routes and options for moving around cities using available public transport. Metro, buses, trains, scooters, Uber and even ferries are some of the options it indexes in its app. The app not only offers routes but also adds maps, schedules and live notifications among other things. Very similar to other alternatives such as Citymapper or what Google Maps and Apple Maps offer in an integrated way.
Founded in 2012 in Israel, the advantages mentioned above have allowed it to expand to more than 3,100 cities in over 100 countries around the world. They claim to have more than 800 million global users and in the last two years they have multiplied their number of users by seven. Their app can be downloaded for both Android and iOS.
But why pay $900 million for it? As explained by Intel, it has to do with the integration that Moovit may have in its mobility subsidiary Mobileye. Mobileye was acquired three years ago for no less than $15.3 billion, and one of the aspects it focuses on is the development of technologies for autonomous driving. Mobileye chips interpret data taken by sensors, cameras and the LIDAR of autonomous cars to make real-time decisions and ensure passenger safety.
Moovit obtains its data from the official and public databases of each city regarding public transport and also from the information provided by the user community. With this, it decides which is the best route at any given time, optimizing the traffic of people and vehicles. Mobileye will use this transport data from Moovit to improve its predictive technologies, explains Intel.
The long-term strategy seems to be to master the different areas of urban transport: autonomous driving, city mapping, autonomous car fleet, car sharing services and public transport user base. The first three are run by Mobileye and the last two by Moovit.