Seoul: South Korea’s largest mobile carrier SK Telecom said on Friday it will spin off its mobility platform business into a separate entity as it partners with ride-hailing company Uber, in a move to strengthen its focus in the connected mobility sector.
The business tentatively called T map Mobility Co will be wholly owned by SK Telecom and become a separate company on December 29, the mobile carrier said in a regulatory filing.
In a joint statement with Uber, SK Telecom said it has also agreed for the new company to set up a joint venture with the U.S. ride-hailing company by the first half of next year.
Uber plans to invest more than $100 million into the joint venture, which will focus on ride-hailing services, and another $50 million into SK Telecom’s new spinoff, according to the statement.
SK Telecom said it expects the joint venture to provide an innovative taxi-hailing business based on its map and navigation services and Uber’s global experience and platform technology in ride-hailing services, reports Yonhap news agency.
The company added that it aims to increase T map Mobility’s valuation to $3.9 billion by 2025.
SK Telecom CEO Park Jung-ho said in January the company is considering dropping Telecom from its name to shift away from its network-focused business.