Telenav and Sionic Join Hands for In-car Digital Commerce

Telenav (NASDAQ:TNAV) and Sionic Mobile on Wednesday (August 22) announced that they have entered into an agreement for in-car digital commerce and offers to drivers.

Telenav, a company engaged in connected car and location-based services and Sionic Mobile, a provider of cloud based connected commerce, said that the partnership will allow automotive original equipment manufacturer (OEM) to bring personalized commerce experience into the car.

The companies said that users can save time, money and effort by using the OEM system by ordering and paying for purchases before pick up from retail locations like coffee shops, gas stations and restaurants.

“By working with Sionic Mobile, we can help automotive OEMs further enhance their driver experience and at the same time generate new streams of revenue through in-car advertising and commerce,” HP Jin, CEO of Telenav, said in the release. “Together with Sionic Mobile, we are committed to providing drivers a safe, easy to use, and engaging experience while on the go.”

Sionic Mobile’s ION Commerce Engine solution would be integrated into Telenav’s connected car and location based services which would result in the commerce, offers and rewards options delivered to consumers inside the vehicle in a user-friendly way. It was noted that users can pay for an item using any digital wallet.

“Working closely with Telenav, a known global leader in connected car services, we are creating a simple, yet robust consumer experience that, we believe, will help further define the future of digital commerce in the automotive industry,” Ronald Herman, CEO of Sionic Mobile, said in the press release.

The agreement between the two companies also lets them to take advantage of Telenav’s Thinknear division,which delivers mobile ads to 100 million consumers based on their location. Further, it was said that the driver’s ability to transact with their favorite brands is increased with the partnership favoring automotive OEMs that can generate additional revenue through the platform.

Following the announcement, shares of Telenav were down 0.85 percent to close the trading session on Wednesday at US$5.85. On TipRanks, the stock has a “Moderate Buy” ranking with an analyst target price of US$9.50, upside of 62.50 percent from current price. TradingView has a “Buy” ranking on the stock with 14 verticals in favor, nine in neutral and three against.

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Securities Disclosure: I, Bala Yogesh hold no direct investment interest in any company mentioned in this article.