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SK Telecom Co. will spin off its mobility platform business into a separate entity called T map Mobility Co. as it partners with U.S. ride-hailing company Uber Technologies Inc.
T map Mobility Co. will be wholly owned by SK Telecom and become a separate company on Dec. 29, the mobile carrier said in a regulatory filing.
SK Telecom also agreed for T map Mobility Co. to set up a joint venture with the Uber by the first half of next year.
Uber plans to invest over US$100 million into the ride-hailing-focused joint venture, and another $50 million into T map Mobility Co.
According to SK Telecom, the joint venture will utilize its map and navigation services and Uber's global experience and platform technology to provide an innovative taxi-hailing business.
The South Korean carrier added that it aims to increase T map Mobility's valuation from the current 1 trillion won to 4.5 trillion won by 2025.
SK Telecom's mobility business is focused around its map application T map, where it provides navigation, taxi-hailing, and parking services. It has 12.5 million monthly active users and competes with KakaoNavi and Naver Map.
The new mobility business is expected to center on self-driving technology based on SK Telecom's 5G network.
