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Honda Acquires Drivemode, A Smartphone App Developer, In Its First Startup Buy Ever

This week, Honda R&D, of Redwood City, Calif.-based , a developer of smartphone apps for drivers, for an undisclosed amount. The deal is notable because it marks Hondas first startup acquisition, according to a .

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Honda R&D is the Tokyo-based research and development subsidiary of Honda. Drivemode had raised just in funding from investors such as and since it was founded in 2014 by a team whose experience included time with and . It is now a wholly-owned subsidiary of Honda R&D.

In 2015, Drivermode released its flagship product (named after the company), an Android app that gives drivers the ability to control their cars without watching the apps screen. Per the companys , Drivemodes voice-enabled commands and large buttons let drivers focus on driving with the ability to use voice-control, a broad swipe, or a single tap to move seamlessly between applications. Drivemodes safe driving app has over 2.5 million downloads in 150 countries.

In a press release, Honda R&D said the goal of the acquisition was to further strengthen Hondas new value creation in the areas of digital and connected mobility products.

The two entities had been working together and conducting joint development activities since 2015 through Hondas Xcelerator program. The program is a collaboration between startups and Honda. Silicon Valley-based Honda Innovations, a subsidiary of Honda R&D, has led the global program.

Earlier this year, Honda stepped up its digital technology game when it established a Digital Solution Center within Honda R&D.

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