As the first deal of its kind, Siyata Mobile’s in-vehicle devices will be designed to improve driver safety and navigation.
With operations designed for enterprise, fleets and construction, Siyata’s business is centered on ergonomic communication devices.
As part of the deal, Siyata Mobile will be integrating its two devices, UV350 and CP250, into the vehicles. The devices are designed for navigation and help prevent drivers being distracted while using the device through its microphone and speakers.
The devices also enhance driver safety, because they allow individuals to communicate in their vehicles without the use of a mobile phone, protecting them from theft.
“We are very excited about the trials that are underway with this globally renowned and fast-growing rideshare company,” said Marc Seelenfreund, CEO of Siyata Mobile, in a press release. “The ride sharing market is innovating and scaling rapidly, creating the opportunity for us to leverage our one of a kind in-vehicle device in this growing industry while improving the safety of the drivers and passengers.”
Along with this most recent contract, Siyata has entered partnerships across a number of industries. On September 5, it was awarded a C$200,000 contract for its UV350 devices with a Canadian civil construction company. As part of the contract, device deliveries are expected to begin as early as the third quarter of 2019. Less than one month earlier, Siyata won a C$400,000 contract to design its devices for first responders.
In a further sign of expansion, it underwent a C$3 million private placement in late August. Seelenfreund said that demand for its cellular services is growing on a worldwide scale, and funds will be used to strengthen the company’s balance sheet and bolster its distribution channels.
While deals show signs of growth, the company’s financials offer a different perspective. In its latest earnings report for the second quarter, Siyata reported a 65 percent decline in cash year-to-date, while its net loss ballooned over 500 percent to C$2.4 million compared to the same time last year.
On a more promising note, the company reduced its liabilities by over C$2 million in the first half of the year alone.
As the ridesharing industry continues to gain market share, several reports anticipate that its growth will continue. For example, according to Grandview Research, the ridesharing sector is projected to grow at a 7.5 percent compound annual growth rate until 2025.
Siyata Mobile noted that this trend specifically established a new vertical for the company.
Shares of Siyata Mobile opened on Monday at C$0.44, rising over 4.5 percent to close at C$0.46 on the TSX Venture.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.