Apollo Tyres signs transport services deal with SemiCab India

FORT LAUDERDALE, FL - Algorhythm Holdings, Inc. (NASDAQ: RIME), an AI-driven technology and consumer electronics holding company, has announced a new partnership between its subsidiary SemiCab India and Apollo Tyres, Ltd., India's largest tire manufacturer. Under the master service agreement, SemiCab India will utilize its AI-powered platform to optimize freight logistics for Apollo, starting with a commercial pilot freight contract in southern India.

The initial contract, which will run for twelve months beginning in October 2024, aims to improve delivery accuracy and reduce service costs, including the elimination of empty miles. Apollo Tyres, a top 10 global tire producer with over $3 billion in sales in 2023, plans to incrementally expand the scope of the agreement with SemiCab India, a subsidiary of SemiCab Holdings, LLC.

Gary Atkinson, CEO of Algorhythm, expressed enthusiasm about the collaboration, highlighting Apollo Tyres' position as the first tire company to join the National Digital Freight Exchange (NDFE) and work with SemiCab. Ajesh Kapoor, Founder & President of SemiCab, also emphasized the significant growth opportunities the partnership could bring to both companies.

SemiCab's platform is designed to orchestrate collaboration across various stakeholders in the supply chain, leveraging real-time data, AI/ML predictions, and advanced optimization models to build fully loaded round trips. This technology has been shown to increase transportation capacity and reduce logistics costs significantly.

Algorhythm, which also owns The Singing Machine Company, a leader in the consumer karaoke industry, holds an option to acquire SemiCab's Indian subsidiary, with the acquisition expected to close in Q4 2024.

This partnership represents a strategic move for both companies, aiming to revolutionize freight logistics in India and potentially save shippers billions of dollars annually through optimization. Additionally, the technology could contribute to sustainability efforts by reducing the carbon footprint of the industry.

The information in this article is based on a press release statement.

In other recent news, The Singing Machine Company, known for its consumer karaoke products, has undergone significant changes. The company has acquired SemiCab, an AI technology firm, and rebranded as Algorhythm Holdings, aiming to invest in AI-driven technology companies. The rebranding effort includes making the legacy karaoke business a wholly-owned subsidiary, with the parent company trading under the new ticker symbol RIME.

Furthermore, Algorhythm Holdings faces potential delisting from The Nasdaq Capital Market due to failure to meet the exchange's minimum bid price and stockholders' equity requirements. The company is actively exploring options to regain compliance and avoid delisting.

In addition to these developments, Algorhythm Holdings announced a strategic shift towards the automotive and connected TV sectors during its second quarter 2024 earnings call. This move follows the recent acquisition of SemiCab and the integration of karaoke microphones into Tesla (NASDAQ:TSLA)'s North American models. Despite a decrease in net sales and gross profit, the company expressed optimism about its transformation into a more technology-driven, asset-light, and higher-margin entity.

Plans to reduce product offerings and focus on WiFi-enabled models by 2025 were also revealed, reflecting the company's new market direction. These are among the recent developments for Algorhythm Holdings.

InvestingPro Insights

While Algorhythm Holdings, Inc. (NASDAQ: RIME) is making strategic moves in the AI-driven logistics space, recent financial data from InvestingPro paints a challenging picture for the company. The stock has experienced significant volatility, with InvestingPro data showing a 21.95% decline in the past week and a 32.55% drop over the last month. This downward trend aligns with an InvestingPro Tip indicating that the stock has "taken a big hit over the last week" and has "fared poorly over the last month."

Despite the promising partnership with Apollo Tyres, RIME's financial health raises concerns. The company's revenue for the last twelve months as of Q2 2024 stood at $29.05 million, with a concerning revenue growth decline of 45.07% during the same period. An InvestingPro Tip warns that the company is "quickly burning through cash," which could impact its ability to fully capitalize on the new logistics venture.

It's worth noting that analysts predict the company will be profitable this year, according to another InvestingPro Tip. This forecast could be influenced by the potential success of the SemiCab India partnership and the expected acquisition in Q4 2024. However, investors should approach with caution, as the company was not profitable over the last twelve months, and its valuation implies a poor free cash flow yield.

For a more comprehensive analysis, InvestingPro offers 13 additional tips for RIME, providing deeper insights into the company's financial situation and market performance.

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