Trainline PLC (LSE:TRN) told investors it has been selected by the UK’s Rail Delivery Group as a technology supplier for one of four digital pay-as-you-go trials.
Trials will take place across Northern Rail and East Midlands Railway, starting between September and November, and each is expected to run for nine months.
Trainline will use geolocation technology to deliver a real-time, in-app solution.
The company sees this as a chance to show its approach in a live setting ahead of potential wider use across UK cities and regions. It added that the technology can support the government's broader rail reform programme.
UK stockbroker Shore Capital, which rates Trainline as a ‘Buy’ with a target pitched at 460p, was upbeat following the announcement.
“To us, the news is an example of how Trainline can adapt and is well placed in an evolving digital UK network. By leveraging geolocation technology, the Group will be able to demonstrate the benefits of its low-capex, real-time, in-app solution, with hopes of rolling it out nationwide,” analyst Katie Cousins said.
Trainline shares climbed close to 1% in Friday’s early trade, to 275p.