SemiCab Wins Contract with Apollo Tyres, $3 Billion Global Tire Manufacturer, for New Indian Commercial Pilot
Algorhythm Holdings, Inc. (NASDAQ: RIME) announced that its subsidiary SemiCab's Indian entity has secured a master service agreement with Apollo Tyres, , India's largest tire manufacturer. Apollo, a top 10 global tire producer with over $3 billion in sales in 2023, has awarded SemiCab India a commercial pilot freight contract for transportation services in India.
The contract, starting in October 2024, will initially cover southern India's commercial corridors with plans to expand into southwest India. It has a 12-month initial duration and allows for scalable lane service. SemiCab will provide its AI-powered platform to reduce service costs, improve delivery accuracy, and eliminate empty miles.
This partnership represents SemiCab's largest freight opportunity in India to date and marks Apollo as the first tire company to join the National Digital Freight Exchange (NDFE) in collaboration with SemiCab.
- Secured contract with Apollo Tyres, a $3 billion global tire manufacturer
- Potential for largest freight opportunity in India for SemiCab
- 12-month initial contract with possibility for expansion
- AI-powered platform expected to reduce costs and improve delivery accuracy
- None.
Insights
This contract with Apollo Tyres represents a significant opportunity for Algorhythm's subsidiary SemiCab. While the initial pilot is in scope, the potential for expansion is substantial given Apollo's
Key points to consider:
- The pilot begins in densely populated commercial corridors, which could lead to high-volume freight opportunities.
- Apollo's plan for incremental expansion based on performance creates a clear path for growth.
- As the first tire company to join the National Digital Freight Exchange, Apollo's participation could attract other industry players.
- The potential acquisition of SMCB Private Solutions in Q4 2024 could further solidify Algorhythm's position in the Indian market.
While the immediate financial impact may be , the long-term potential for revenue growth and market expansion is significant. Investors should monitor the pilot's progress and any announcements of expanded lane assignments.
SemiCab's AI-powered platform offers compelling technological advantages in the freight logistics sector. The focus on reducing service costs, improving delivery accuracy and eliminating empty miles addresses critical inefficiencies in the industry. Key technological aspects to consider:
- The platform's ability to optimize routes and reduce empty miles can lead to significant cost savings and improved sustainability.
- AI-driven predictive analytics can enhance delivery accuracy and overall supply chain efficiency.
- The scalable nature of the software services allows for rapid expansion without major infrastructure investments.
- Integration with Apollo's existing systems will be important for seamless operations and data flow.
The success of this pilot could serve as a strong proof of concept for SemiCab's technology, potentially leading to adoption by other major players in the logistics and manufacturing sectors. This contract validates the platform's applicability in the Indian market, which has unique challenges and opportunities in freight logistics.
Apollo Tyres, Ltd Awards SemiCab Scalable Pilot Contract for Transportation Services in India
Fort Lauderdale, FL, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), an AI-driven technology and consumer electronics holding company, announced today that SemiCab, Inc.’s subsidiary, SMCB Private Solutions Limited (“SemiCab India”), has entered into a master service agreement (MSA) with Apollo Tyres, Ltd. (“Apollo”), India’s largest tire manufacturer. As a top 10 global tire producer, Apollo generated over
Algorhythm’s subsidiary SemiCab Holdings, LLC (“SemiCab”) will provide enterprise-level software services to SemiCab India to provide its AI-powered platform, designed to reduce service costs, improve delivery accuracy, and eliminate empty miles. Apollo has awarded SemiCab India a commercial pilot freight contract, allowing for highly scalable lane service without financial or geographical limitations, subject to mutual consent.
The contract, beginning in October 2024, will initially cover the densely populated commercial corridors in southern India with planned expansion into southwest India, with an initial duration of twelve months. Apollo plans to expand the scope of the agreement incrementally, assigning additional lanes as SemiCab demonstrates the capacity to meet their shipping needs.
“We are thrilled to partner with Apollo Tyres,” said Gary Atkinson, CEO of Algorhythm. “Apollo is now the first tire company to join the National Digital Freight Exchange (NDFE) to collaborate with SemiCab, and this contract represents the potential to be our largest freight opportunity in India to date. We are excited to serve another major player committed to advancing the Indian market.”
Ajesh Kapoor, Founder & President of SemiCab, added, “We are thrilled to partner with such a globally recognized brand as Apollo Tyres. This collaboration marks a significant milestone for SemiCab, as it opens the door to immense growth opportunities within one of the largest and most established companies in the industry. By leveraging our AI-powered platform, we are confident in our ability to drive meaningful cost efficiencies and delivery improvements for Apollo. This partnership represents a major step forward in our mission to revolutionize freight logistics in India, and we are excited about the growth it will drive for both of our businesses.”
The MSA will be serviced by SemiCab’s Indian subsidiary, SMCB Private Solutions Limited, which Algorhythm holds an option to acquire, with the acquisition expected to close in Q4 2024.
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a holding company with two primary investments. First, the Company owns SemiCab Holdings, an emerging leader in the AI-enabled global logistics industry. Second, the Company owns The Singing Machine Company, the worldwide leader in the consumer karaoke industry.
SemiCab is a cloud-based Collaborative Transportation Platform built to achieve the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. To orchestrate collaboration across manufacturers, retailers, distributors, and their carriers, SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners. To build fully loaded round trips, SemiCab uses AI/ML predictions and advanced predictive optimization models. On the SemiCab platform, shippers pay less and carriers make more while not having to change a thing.
Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. SemiCab's Orchestrated Collaboration™ AI model has proven to increase transportation capacity, improve asset utilization, reduce empty miles, lower logistics costs, and provide visibility into the entire transportation network. Models show the technology has the capability of saving shippers tens of billions of dollars annually through optimization. Further, SemiCab’s technology also has the potential to play a key role in the improved sustainability model globally. Based on its proven ability to improve truck utilization rates from
For additional information regarding SemiCab: http://www.semicab.com
The Singing Machine Company, Inc. is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, the Company designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Their portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. The Company also has a new philanthropic initiative, CARE-eoke by Singing Machine, to focus on the social impact of karaoke for children and adults of all ages who would benefit from singing. Their products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
investors@algoholdings.com
www.algoholdings.com
Forward Looking Statements
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FAQ
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