Pointer Telocation Ltd (NASDAQ:PNTR) has won a five-year contract to provide fleet management and driver behaviour monitoring services for 4,000 New York black cars and car service vehicles working for online transportation network companies (TNC), including Uber and Lyft. The contract, announced on 17 January, represents PNTR’s first foray into the US market, which has been made possible by the group’s recent move into cloud-based SaaS services. Although small in revenue terms, the contract looks to have significant upside potential for the group. It should considerably raise the group’s profile in the US in the growth area of driver monitoring, even more-so as global ADAS leader Mobileye (NYSE:MBLY) is working with PNTR in the project (providing ADAS services). If successful, we see very good prospects for it to lead to further business from the fast-growing TNC sector across the US and internationally, as well as from other forms of for-hire vehicles in NYC.
By improving driving outcomes, the contract aims to reduce the insurance premiums levied by the American Transit Insurance Company (ATIC) for PNTR’s client, which provides vehicle leasing services to TNC drivers.
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