Tech share Yojee Ltd (ASX:YOJ) zooms 9% higher on UPS agreement

One of the best performers on the ASX this morning has been the Yojee Ltd (ASX: YOJ) share price.

At the time of writing the logistics and supply chain management platform company’s shares are up 9% to 17 cents.

Why are Yojee’s shares on the rise today?

This morning the company announced that it has entered into an innovation framework agreement with UPS Asia to provide a framework to facilitate an ongoing technology collaboration.

According to the release, following on from its recent successful blockchain pilot collaboration, Yojee and UPS agreed to enter into the agreement to facilitate a broader and longer-term collaboration. The agreement is for 12 months and fees may be derived by Yojee on any collaborations between the two parties.

Under the agreement, specific projects may be identified and project terms, such as activities, timing, locations, and project costs, are to be separately agreed between Yojee and UPS on a project by project basis.

Ed Clarke, managing director of Yojee, believes this agreement is an endorsement of the company’s capabilities.

He stated that: “We are excited to extend and broaden our working relationship with UPS, the world’s largest package delivery company, through this overarching innovation partnership which will span technology, software, payments and blockchain. Following on from our successful blockchain pilot, this provides further industry validation and endorsement for Yojee’s market leading capabilities.”

Should you invest?

While this agreement and the one it signed with DB Schenker recently are certainly positive developments, I still feel it is far too early to invest.

There is no guarantee that either of these agreements will ever result in meaningful revenues that will go on to justify its ~$125 million market capitalisation.

I would suggest investors keep Yojee on their watchlist and look out for signs that its technology is generating meaningful revenues.

Until then, fellow logistics and supply chain platform provider WiseTech Global Ltd (ASX: WTC) could be a great option for investors.

Alternatively, this next tech boom could be an even better place to put your money.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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