Caterpillar is turning to a Chicago-based data analytics company to help customers monitor their fleet of machinery more effectively.
Caterpillar, the massive Peoria-based maker of construction machinery and equipment, announced Thursday that it has made a minority investment in Uptake and will use the Chicago-based tech company to build a predictive diagnostics platform for its products. Caterpillar and Uptake will jointly develop an end-to-end platform that gives customers the ability to track fuel efficiency, idle times, location and other machine data, Doug Oberhelman, Chairman and CEO of Caterpillar, said in a statement.
“We’ll be able to transform the quintillion bytes of incoming data we see every day into useful information we feed back to our customers for on-the-spot decisions and planning purposes to further reduce owning and operating costs,” Oberhelman said. “We want to empower our customers with the insight necessary to shift from a reactive ‘repair after failure’ mode to a proactive ‘repair before failure’ stance. The end result will be more efficient operations and increased fleet availability for our customers. And the more our customers’ machines and engines stay running, the more money they make.”
Groupon founders Brad Keywell and Eric Lefkofsky were named Uptake co-founders, and Keywell became CEO.
Caterpillar said that Uptake’s nearby Chicago location, as well as its 2014 partnership with Electro-Motive Diesel–a subsidiary of Caterpillar–to develop locomotive-related predictive diagnostics, were factors in the partnership.
“We are at a unique time in history—analytics are enabling insights that are changing the way entire industries work,” added Keywell. “Uptake is at the front of this evolution. Our platform takes massive data provided by sensors, combines it with data science to understand signals and patterns and deploys insights in real time that save money, optimize performance and prevent unplanned downtime.”
Correction: The headline of this post has been updated for accuracy. While Uptake was acquired by Groupon in 2012, is not Groupon’s analytics shop. Uptake is not a Groupon company.
Screengrab via Uptake