Algorhythm Holdings ( RIME ) shares surged after its subsidiary, SemiCab, secured a service contract with a $200 billion global consumer packaged goods company. Starting in mid-October 2024, SemiCab will provide AI-powered shipping services across major metro markets, with potential expansion after six months.

Gary Atkinson, CEO of Algorhythm ( RIME ), called this a significant milestone, marking SemiCab’s first major U.S. contract since its acquisition in July and the largest U.S. customer to award lanes. He emphasized the company’s disruptive potential in the transportation sector.

Ajesh Kapoor, Founder and President of SemiCab, noted the contract’s potential to validate their model with a client spending over $1 billion annually on freight, offering leverage for further bids in early 2025 and strengthening their network in key markets.

Kapoor highlighted long-term opportunities, including expansion through the National Digital Freight Exchange in India and other global markets by 2025.

Ajesh Kapoor, Founder and President of SemiCab, added, “If we successfully deliver on the projected cost savings and efficiency gains, this U.S. contract could expand significantly. Moreover, this global client is already part of the National Digital Freight Exchange in India, where we are actively involved.”

Price Action: RIME shares are trading higher by 39.6% at $0.6450 premarket at the last check Monday.

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