The two companies announced the tie-up in April, with plans to target 2.1m RAC breakdown customers with the devices, which record driving performance and reward careful drivers with lower premiums.
The partners jointly invested £30m in the tie-up, which Quindell chairman Rob Terry said would “revolutionise the insurance industry” and pave the way for them to sign the world’s biggest insurance-linked telematics contract.
However, despite plans to install 50,000 “black boxes” each month from July, the process has not yet started, according to the Financial Times.
As part of the joint venture, the RAC received warrants entitling it to 250m Quindell shares when the claims firm’s stock market price reached 50p within two years.
Quindell’s share price was 43p at the time when the deal was announced, but now, after the one for 15 consolidation, it is at 205.5p. It is equivalent to just 14p pre-consolidaton, meaning that Quindell’s price per share would have to reach 750p for the RAC to make a £125m return.
According to the FT, a Quindell spokesman said that the firm “continues to have a positive relationship” with the RAC and has “a number of joint contracts in place including the CCS JV”.
The Hampshire-based company said that it would provide an update on the roll out “when appropriate”.
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