AMSTERDAM—Car-hailing service Uber Technologies Inc. has struck a deal with Dutch navigation company TomTom NV to use digital maps and traffic data for its smartphone application.

TomTom will provide users of the Uber driver app with digital maps and traffic data in more than 300 cities around the world, the Dutch company said Thursday. Financial details of the deal weren't disclosed.

Uber said the deal with TomTom won't replace traffic information it currently relies on and that it will continue to use a variety of different sources for its Uber driver app, including Alphabet Inc.'s Google mapping technology. "We have Google, Apple and now TomTom", a spokesman said.

Uber is seeking to bolster its mapping capabilities to speed up its global expansion and as it develops new automotive technologies, such as self-driving cars. Earlier this year, The Wall Street Journal reported that Uber submitted a bid to acquire Nokia Corp.'s digital mapping business, Here, which was eventually bought by a group of German car makers for around €2.5 billion ($2.7 billion).

SNS Securities analyst Martijn den Drijver said TomTom made Uber an offer "which was probably more attractive than paying [€2.5 billion] or more for maps and traffic," in a reference to Uber's bid for Nokia Here. The contract is a big win for TomTom as the company could also benefit from Uber's plan to expand to other markets, Mr. den Drijver said.

TomTom is one of the last remaining independent providers of digital maps. Analysts have said this could make the Dutch company a potential takeover target for car makers and technology companies seeking to develop self-driving cars.

Shares in TomTom rose nearly 8% in Amsterdam on Thursday, having risen more than 100% so far this year.

Write to Ellen Proper at Ellen.Proper@wsj.com

 

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(END) Dow Jones Newswires

November 12, 2015 08:55 ET (13:55 GMT)

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