Novatel Wireless Delivers Solution for UBER Drivers in South Africa
SAN DIEGO and JOHANNESBURG, South Africa, June 01, 2016 (GLOBE NEWSWIRE) -- Novatel Wireless, Inc. (Nasdaq:MIFI), a leading global provider of solutions for the Internet of Things (IoT), including software-as-a-service (SaaS), and Vulindlela Underwriting Managers (VUM), the preferred auto insurance provider for Uber South Africa, have joined forces to deliver a customized usage-based insurance (UBI) solution for Uber driver-partners in South Africa. Deployments commenced earlier this month.
"We are very excited about the potential of this insurance model with the Ctrack solution. Our partnership with Novatel Wireless has meant that we are able to take into consideration important risk factors that were previously unknown. Our hope is that this would lead to safer roads for all of South Africa's commuters," said Dave Gould, Managing Director of VUM.
Uber, the innovative technology platform most commonly known for their ride-share service in 400 cities worldwide, has a large presence in South Africa with nearly 25,000 driver-partners to date. VUM, Uber's preferred auto-insurance provider in South Africa, collaborated with Novatel Wireless to deliver a customized usage-based insurance program. The program encourages Uber drivers to drive more safely by rewarding them with lower insurance premiums for those who improve their driving behavior. Their driving style is measured by the Ctrack telematics solution that reports on performance factors such as hard braking, harsh cornering, and excessive speeding. The technology also accurately measures distance traveled. VUM charges a set amount per kilometer, which they will deduct from the Uber driver-partners' fares on a weekly basis. This type of usage-based model in the automobile insurance and automobile leasing sectors throughout Europe and Africa is coined "pay-per-kilometer," (pay-per-kay) in which rates are measured based on the number of kilometers traveled.
"This model combined with driver behavior monitoring has huge potential for the South African market where road fatalities are at unacceptable levels, as good driving styles can only lead to improved safety on the road," said Pierre Bruwer, Managing Director of Ctrack SA. "Ctrack's driver behavior monitoring is already being used by companies operating small and large fleets. As adoption of such technology increases, so does the awareness and contribution to improving driving habits in the country."
Telematics deployments in the car-share sector create new use-cases and user-friendly business models for managing and connecting car-share fleets. Earlier this year, Novatel Wireless announced an innovative pilot program with a leading automobile manufacturer and car-share operator in Europe.
About Vulindlela Underwriting Managers (VUM)
VUM is an underwriting management agency for Santam Ltd. VUM have specialized in insuring all types of taxis for the last 10 years. VUM have constantly sought to embrace the use of information system and technologies to create efficiencies for our business and better service for our clients.
About Novatel Wireless, Inc.
Novatel Wireless, Inc. (Nasdaq:MIFI) is a leading global provider of solutions for the Internet of Things (IoT), including software-as-a-service (SaaS) solutions for the fleet telematics market. Our innovative products and solutions provide anywhere, anytime communications and analytics for consumers and businesses of all sizes, with approximately 164,000 subscribed fleet vehicles for Ctrack among the Company's 534,000 global subscribers. Novatel Wireless, Inc. is headquartered in San Diego, California. www.novatelwireless.com. @MIFI (Twitter); https://www.linkedin.com/company/novatel-wireless (LinkedIn)
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Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the ability of Novatel Wireless to expand its addressable markets and drive growth in service revenue and broaden its customer base as a result of the acquisition of DigiCore, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Novatel Wireless and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Novatel Wireless undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. These forward-looking statements also involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Novatel Wireless in general, see the risk disclosures in the Annual Report on Form 10-K of Novatel Wireless for the year ended December 31, 2015, and in other filings made with the SEC by Novatel Wireless (available at www.sec.gov).
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