Honda Motor Co. Ltd. said Oct. 7 that it has acquired California startup Drivemode Inc., which develops smartphone apps for drivers.
Financial terms of the deal were not disclosed, but Honda said the acquisition was initiated through the Japanese carmaker's research and development arm Honda R&D Co. Ltd.
San Jose-based Drivemode develops and operates smartphone-based connected services including apps and cloud-based technologies. Its products include Drivemode for Android, which simplifies how people use their phones while driving, as well as Drivemode Dash for iOS devices, which lets drivers speak to send a text, place a call, play music and more.
Panasonic Corp. and Mitsui Sumitomo Insurance Venture Capital Co. Ltd. are among Drivemode's backers. The company was founded in 2014 by entrepreneurs from Zipcar Inc. and Tesla Inc., according to its website.
Prior to Honda's acquisition, the startup has been working with Honda R&D on joint development activities since 2015 through the Honda Xcelerator program.
Honda said it expects the acquisition to boost the company's new value creation in the fields of digital and connected mobility products.
Drivemode is the carmaker's first startup acquisition, according to the release.
