S Korean carrier SK Telecom joins Uber in mobility biz spinoff

Seoul, Oct 16 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.

( With inputs from IANS )