On Monday (September 9) Montreal-based Siyata Mobile (TSXV:SIM, OTCQX:SYATF) secured its first deal with an international ridesharing company to sell its vehicle-mounted devices.
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. Providing cellular vehicle communication, the devices are designed for navigation in addition to preventing drivers from distractions through its microphone, speakers and external antennas.
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Give me my free report!Underscoring the devices is driver safety, allowing individuals to communicate in their vehicles without the use of a mobile phone.
“We are very excited about the trials that are underway with this globally renowned and fast-growing rideshare company,” said Marc Seelenfruend, 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 for 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. Seelenfruend said that demand for its cellular services is growing on a worldwide scale, as funds will be used to strengthen the company’s balance sheet and bolster its distribution channels.
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Give me my free report!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.
Meanwhile, the company reported over an over one million increase in intangible assets. With that being said, in a more promising signal 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.
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