Dutch navigation company TomTom has revealed that its fleet-management business grew by 38% in 2013 to serve a total of 330,000 connected vehicles.
Fleet-management services are now used by some 27,000 customers in more than 60 countries worldwide, according to the technology player.
“This year-on-year growth reflects our ongoing success in bringing to market products that offer significant value to companies operating vehicle fleets,” said Thomas Schmidt, the managing director of TomTom Business Solutions, which is responsible for the range of fleet-management services.
“Through continuous innovation, we have consistently delivered products that enable our customers to make ever smarter business decisions,” added Schmidt.
TomTom (Amsterdam, Netherlands) says it is set to launch its latest innovation in the first quarter of 2014, indicating that the product would be designed to help small businesses take advantage of connected-car technology.
According to a statement, the device will plug directly into a vehicle’s OBD port, allowing customers to install it without incurring any fees.
Business Solutions represented a rare bright spot for TomTom last quarter, with revenues up 11%, to €21 million ($28.7 million), compared with the same period of 2012.
That compared with an overall revenue decline of 11%, to €244 million.
The Business Solutions division was boosted by the acquisition of Coordina, a fleet-management service provider based in Spain.
In its earnings report, TomTom noted that Coordina’s base of subscribers grew by 39%, to 310,000, from 223,000 during the same period of 2012.
Unfortunately, all of TomTom’s other units flagged sales declines.
TomTom blamed the revenue setback partly on lower demand for in-dash devices from its automotive partners as a result of weak car sales in Europe.
However, the company has also been hit by growing competition from smartphone makers that have included navigation software in their devices.