In modern day, smartphones have become an extension of its users, causing people to reach for their devices even while driving. While smartphones offer an unparalleled convenience, it comes with its pitfalls. Smartphone usage while driving has caused a significant increase in traffic accidents and fatalities in the United States. In 2022 alone, there were nearly 43,000 traffic-related deaths, a 30% increase since 2013. The NHTSA also reports that the fatality rate per 100 million vehicle miles traveled has increased by 18% since 2013. This means that people are more likely to die in a traffic crash now than they were a decade ago. The rise in accidents can be linked to the increasing number of people using smartphones, with a whopping 85% of Americans owning one. Over 3,500 US deaths in 2021 alone were due to texting or social media use while driving. This has become a serious problem that requires a solution[YC1] as there currently are none to date.
Here to answer that call is SaverOne (NASDAQ: SVRE), an emerging key player in enhancing road safety. SaverOne's innovative In-Cabin Driver Distraction Prevention Solution (DDPS) targets commercial vehicles, offering a practical means to limit liability risks associated with distracted driving. By detecting and blocking access to distracting apps and notifications, it aims to make our roads safer.
About the Company
SaverOne is an innovative technology company dedicated to developing and delivering cutting-edge OEM and solutions designed to reduce the risk of vehicle accidents and enhance road safety. SaverOne's mission is a commitment to saving lives by reducing the ongoing threat of distracted driving, which is largely caused by smartphone usage while on the road. The Company’s main product being sold in the market today, aims to prevent accidents by blocking distractions from users’ smartphones.
Beyond addressing distracted driving, the Company is also moving forward in the development of a groundbreaking sensor system capable of detecting and tracking vulnerable road users (VRUs) under all visibility conditions through the location of their mobile phone footprint with a goal of reducing accidents in urban areas.
SaverOne's dedication to road safety and innovative technology makes it a crucial player in the ongoing efforts to make our roads safer for all.
About SaverOne’s System
SaverOne's one of a kind system is already making an impact, having launched the Driver Distraction Prevention System (DDPS) product in 2019 with several pilot programs, and now has installations in over 3,000 vehicles with 4,300 systems ordered as of August 2023. In late 2022, SaverOne introduced its updated second generation of its system, with capabilities enabling it to address the global automotive market. In 2023, the company achieved a significant milestone by announcing its initial international sales, with activities in the US, Spain, Italy and the Gulf Region as well as Israel.
With road accidents in the United States causing an annual cost exceeding $870 billion, and approximately a quarter of these accidents due to smartphone usage, SaverOne's system addresses this issue head-on. The technology works by identifying the driver's area within the vehicle while blocking access to mobile apps such as messaging and social media, while allowing users access to navigation systems. What sets SaverOne apart is its ability to achieve this without requiring user intervention, creating a safer driving environment.
The Company’s primary markets span commercial and private vehicle fleets, vehicle manufacturers, and insurance and leasing companies. By targeting these key sectors, SaverOne offers a well-rounded solution.
SaverOne DDPS
SaverOne's technology relies on mobile RF footprint analysis, using signal processing and artificial intelligence (AI). Their In-Cabin Driver Distraction Prevention system (DDPS), which was developed in response to NHTSA guidelines to reduce driver distractions, automatically identifies the driver's mobile device and applies a "Safe-Mode" to that specific phone without the driver’s involvement.
The DDPS system uses hidden sensors and a Phone Location Unit hidden under the dashboard. Users are required to install the mobile application for the system to work. Without it, any phone detected near the driver triggers an alarm. Once installed, the app restricts most functions, allowing only approved apps, such as navigation, which fleet administrators or insurers can customize for individual users.
While the vehicle is in motion, the app activates a "safe mode," preventing the driver from using the unauthorized apps that may distract and pausing incoming messages, with an auto-response to inform senders of the driver's unavailability. Attempting to uninstall the app triggers an alarm, which stops when the app is reinstalled, or the device is removed from the driver's area. When the vehicle stops, all phone restrictions are lifted. SaverOne's smart algorithms identifies the driver’s phone location within the driver seat area when they start driving, keeping them safe without impacting other phone users within the car. Fleet managers can change the system to fit their needs, and get reports on how drivers are doing, making it a smart system for all.
SaverOne VRU Detection Solution - Future Product
Vulnerable Road Users (VRUs), pedestrians and cyclists, are often guilty of being glued to their phones, in turn, poses a safety issue on the road. Studies estimate that VRUs account for 70% of fatalities in urban accidents, with pedestrians making up nearly 40%. Poor weather conditions contribute to approximately 21%of annual vehicle crashes, with rain alone accounting for 46% of these incidents. Furthermore, a significant percentage of pedestrian fatalities occur in urban settings (84%) and during dark lighting conditions (74%).
SaverOne’s technology addresses these challenges head-on. The Advanced Driver Assistance System (ADAS) sensor is integrated within the vehicle, and its main objective is to detect the signals emitted by nearby cellphones. By doing so, it calculates several important factors such as the location, speed, and direction of movement of the pedestrian’s phone. The sensor shares this data with the car's safety system, which enables early avoidance of the VRU and makes driving safer. SaverOne's VRU Detection Solution ensures that both the vehicle and the driver get important alerts through lights, sounds, and vibrations.
SaverOne's RF sensor technology has several key benefits. It detects cellphone footprints even when the view of that VRU is blocked, or when the weather is bad, like fog, rain or snow.
A Competitve Edge
In SaverOne's market, competition mainly revolves around using built-in smartphone tools or manually silencing notifications. Android Auto and Apple Focus offer features similar to SaverOne's Driver Distraction Prevention System (DDPS) but require user customization and an active choice to enable[YC1] , which so often they do not choose to activate, making them ineffective.
The cost of SaverOne's solution is initial fee estimated at $300-$600 and needing aftermarket installation as well as a monthly fee after an initial period. Built in smartphone solutions come at no extra cost.
However, despite the cost, SaverOne’s solution is ideal for fleets and commercial applications. It stands out as an excellent alternative due to its proactive approach, automatically engaging the system when a phone is in the driver's vicinity, enhancing safety by minimizing reliance on drivers' active choices. This hands-free system makes it particularly suitable for commercial applications where vehicle and fleet owners prioritize distraction prevention, without having to depend on driver discretion.
Future Outlook
SaverOne has achieved substantial financial growth, with an impressive 286% increase in revenues, reaching approximately $400k in the first half of 2023 compared to $103k in the same period in 2022. This growth is attributed to the expanded sales of the SaverOne System to both new and existing customers over the past year. The Company’s first-half operating loss of $4.8 million can be attributed largely to the $3.3 million spent on research and development. The company foresees ongoing elevated R&D expenses as they continue to develop their OEM solution and VRU product.
That said, SaverOne remains focused on global expansion with having received orders for around 3,200 systems by March 31, 2023, including over 2,400 systems purchased by commercial customers and over 1,700 of these systems have been installed. Now as of August 29, 2023, installations have grown to 4,300 systems ordered and nearly 3,000 already installed. These developments, along with strategic partnerships such as Electra Afikim, one of the largest bus operators in Israel, and the memorandum of understanding with IVECO, highlight SaverOne's promising future in the automotive safety sector. The automotive sensor market is expected to reach USD 62.2 billion by 2028 from USD 30.8 billion in 2023, at a CAGR of 15.0% during the 2023-2028 period. This growth is bolstered by the rising interest in automated vehicles, with sensors playing an important role in monitoring the overall safety and security.
With a strong increase in orders and installations, and the expansion of its operations into new markets, SaverOne is well-positioned for continued growth in the coming years.
[YC1]Lets emphasize that users tend not to cooperate and not to activate these features, making them in effectiveAs you can see above, SaverOne's stock is currently undervalued, with a market cap of approximately $2 million and priced at $0.53 per share. With the successful launch of its Generation 2.0 solution in late 2022 and a strategic focus on key markets such as the U.S. and Europe, the Company has been experiencing remarkable expansion, bolstered by the 286% year-over-year increase in revenues. By August 29, 2023, numbers grew to 4,300 systems ordered, with nearly 3,000 installed.
SaverOne's active engagement with the EU's Driver Distraction Committee positions them well for upcoming regulations, which aim to make distraction identification [YC1] systems mandatory in new EU vehicles from July 2024, with further measures for distraction avoidance by July 2027. This regulatory backing, coupled with SaverOne's product portfolio and IP that aims to make roads safe for all, solidifies itself as a compelling investment opportunity for investors at SmallCaps Daily.
[YC1]Its currently identification, not prevention, so use other word
Final Thoughts
As you can see above, SaverOne's stock is currently undervalued, priced at $0.53 per share. With the successful launch of its Generation 2.0 solution in late 2022 and a strategic focus on key markets such as the U.S. and Europe, the Company has been experiencing remarkable expansion, bolstered by the 286% year-over-year increase in revenues. By August 29, 2023, numbers grew to 4,300 systems ordered, with nearly 3,000 installed. SaverOne's active engagement with the EU's Driver Distraction Committee positions them well for upcoming regulations, which aim to make distraction prevention systems mandatory in new EU vehicles from July 2024, with further measures for distraction avoidance by July 2027. This regulatory backing, coupled with SaverOne's product portfolio and IP that aims to make roads safe for all, solidifies itself as a compelling investment opportunity for investors at SmallCaps Daily.