Published on Thursday August 13th, 2015
Tencent Holdings ADR (OTCMKTS:TCEHY) is reported to have penned a strategic partnership with Sensewhere, an indoor mapping service. The move mirrors that of Alibaba Group Holding Ltd (NYSE:BABA) with its AutoNavi mapping service.
Importantly, the Chinese tech giant has remained tight lipped on the details of the partnership; the amount of the investment and the stake bought are unknown thus far. However, we do understand that the strategic partnership will result in Tencent incorporating the technology to its Tencent Maps via license purchases. Apart from mapping services, Tencent is also reported to use the technology in targeted advertisement based on location.
Other details of the deal are that use of the mapping service will not only be limited to WeChat, the largest instant messaging service in China. Tencent Maps will also be available to numerous other websites, through software development kits (SDK) and application program interfacing (API).
Tencent has now joined the ranks of rival Internet giants with its latest development; the move will offer increased competition to Alibaba and Baidu as well as translate greater progress in the online-to-offline (O2O) trend where Chinese e-commerce giants are making a shift to providing “offline” services as well to its users; tapping into a whole new industry segment with the same customer base. O2O migration is rampant in the industry as industry giant Alibaba has increased its focus on smartphone apps and other “offline” avenues.
Apart from just revenues and business growth, “Offline” services also help companies in increasing their data collection capabilities with a new batch of vital information constantly being collected and processed.
Sensewhere provides real-time location information to the user to aid in navigation, however the punch line for the company is that the technology does not solely require a strong satellite or GPS connection; rather it can operate perfectly on a WiFi or Bluetooth connection. Due to these specifications, the mapping service seems to work best in indoor locations rather than outdoor.
Subscribe to get our latest content by email.