Verizon Communications Inc. (NYSE:VZ) has made an investment in self-driving vehicle startup, Renovo Auto, as it continues to look for new opportunities for growth. According to the Wall Street Journal, the carrier has made a $10 million investment in the startup. Founded in 2010, the startup is quickly making a name for itself autonomous cars seen as the future of the auto industry.
Verizon $10 Million Investment
It is still unclear how much of the $10 million came from the carrier’s capital arm Verizon Ventures. There is talk that part of the amount could have come from other sources. However the same just shows how focused the company is, on betting big on telematics a field that continues to bridge the gap between modern transportation and automated communications.
Verizon is the latest tech giant to bet big on the fast growing spectacle that continues to attract huge investments. However, the carrier is somehow late to the party, Alphabet Inc (NASDAQ:GOOGL) having already made significant developments. The search giant is currently polishing its technology having clocked thousands of miles with its Waymo self-driving cars.
Apple Inc. (NASDAQ:AAPL) is reportedly working on its own self-driving cars having been on a poaching spree of some of the best talents in the market. Investments in this area of growth is only expected to continue growing as it becomes clear regulations will make self-driving cars more common in future. Growth in data generated by these cars is also expected to continue growing, which should provide new opportunities that the likes of Verizon can tap into, in future.
Verizon’s Auto Industry Big Bets
Verizon’s investment in Renovo does not mark its first entry into the auto industry. As early as 1996, the carrier was already looking for opportunities in the space having collaborated GM for the first in-vehicle communication system. However, the partnership ended in 2014 when the nation’s largest automaker started working with AT&T Inc. (NYSE:T), its biggest rival.
Verizon has since teamed up with Mercedes Benz as the two continue working on an in-vehicle telecommunication system. One of its biggest achievement in the auto industry is the development of an app dubbed HUM that allows drivers to connect wirelessly with Bluetooth enabled vehicles to access location-based services.
Verizon stock was down by 1.46% in Thursday trading session ending the day at lows of $46.67 a share.