1. SemiCab's contract expanded by over 7 times, increasing lanes to 183. 2. The expansion adds $5.5 million in annual service revenue for SemiCab. 3. This is SemiCab's largest contract, raising its ARR to over $13 million. 4. Increased freight volume enhances efficiency and reduces costs for customers. 5. Similar expansions have occurred, indicating strong growth in logistics sector.
The significant increase in service revenue and contract size strongly suggests robust future growth. Historical examples, such as similar expansions, correlated with price surges can be noted, reinforcing predictions of positive market responses.
The expansion’s scale and expected revenue increase are critical indicators of RIME's growth potential, driving investor interest significantly.
This contract expansion signifies a sustainable growth trajectory for SemiCab, potentially elevating its market position. With the logistics sector's focus on optimization, long-term growth remains likely.
Fort Lauderdale, FL, Dec. 11, 2025 (GLOBE NEWSWIRE) – Algorhythm Holdings, Inc. (NASDAQ: RIME) has announced a substantial expansion of its Master Services Agreement through its subsidiary, SemiCab. This marks the company's largest contract expansion to date with one of India's leading paint manufacturers, significantly enhancing its logistics service capabilities.
Under the terms of the newly expanded agreement, the number of committed logistics lanes has surged from 25 to 183 lanes, a remarkable seven-fold increase. This substantial expansion is projected to boost SemiCab's annual service revenue by an additional $5.5 million. Initially, the company managed only 25 lanes, generating approximately $0.5 million in annual revenue during its pilot program launched in early 2023.
This $6 million contract represents the largest single award in SemiCab's history and is expected to elevate the company's annualized revenue run rate (ARR) to over $13 million upon completion. The AI-driven, cloud-based Collaborative Transportation Platform operated by SemiCab aims to optimize logistics costs while improving delivery accuracy and minimizing empty miles, thus enhancing efficiency and sustainability in the freight industry.
Ajesh Kapoor, CEO of SemiCab Holdings, LLC, expressed enthusiasm regarding the contract. "We’re thrilled to expand one of our largest customer relationships to date. This award serves as a strong validation of the results our AI-powered platform delivers," he stated. Kapoor highlighted the potential to unlock greater efficiencies and cost savings by increasing freight volume across the network.
Furthermore, he noted, "As our network grows, we unlock powerful network effects that create new opportunities for optimization and efficiency." Each new customer contract not only amplifies the volume of shipments but also enhances the network's density, creating a self-reinforcing cycle that escalates utilization and reduces empty miles.
Since 2021, SemiCab has initiated over a dozen pilot programs with new clients in both the United States and India, each generating between $1 million and $2 million in freight service revenue. As these programs complete their terms, many customers have expanded their agreements, both in volume and the geographic scope of awarded lanes.
This latest contract is the fifth major expansion in India for 2025, underlining the growing demand for SemiCab's logistics solutions. Earlier in the year, the company secured similar expansions with Kellanova India and a Fortune 50 global consumer packaged goods company.
Algorhythm Holdings, Inc. is a leading AI technology firm focused on revolutionizing the logistics and distribution sector through its innovative subsidiary, SemiCab. Since its inception in 2020, SemiCab has empowered major retailers and transportation providers to address persistent supply chain challenges. Utilizing its AI-enhanced Collaborative Transportation Platform, SemiCab offers scalability to predict and optimize millions of loads effectively.
For additional information, please visit www.semicab.com.
Brendan Hopkins
Phone: 407-645-5295
Email: investors@algoholdings.com
Website: www.algoholdings.com
This article contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and involve risks and uncertainties that may cause actual results to differ materially from those predicted. Stakeholders should avoid placing undue reliance on forward-looking statements.