VW Invests in European Ride-Hailing Service
Volkswagen will be making a $300 million strategic investment in Gett, a global ride hailing service provider. This partnership is based on a joint growth strategy to expand on-demand mobility services in Europe, the company announced on May 24.
Gett is one of the leading providers in the European ride-hailing market, according to the company. It is currently available in 60 cities worldwide, including London, Moscow and New York City. Its business model, unlike Uber, is based exclusively on licensed drivers who have a permit to carry passengers.
"The Volkswagen Group and Gett is a great strategic partnership. The pay-per-ride domain is growing rapidly. In that context, Gett provides VW with the technology to expand beyond car ownership to on-demand mobility for consumers and businesses," said Shahar Waiser, Gett's founder and CEO.
The Volkswagen Group’s goal with this partnership is to generate a substantial share of its sales revenue from the ride-hailing market by 2025.
“Alongside our pioneering role in the automotive business, we aim to become a world leading mobility provider by 2025,” said Matthias Müller, chairman of the board of management of Volkswagen Aktiengesellschaft. "Within the framework of our future Strategy 2025, the partnership with Gett marks the first milestone for the Volkswagen Group on the road to providing integrated mobility solutions that spotlight our customers and their mobility needs."
Completion of Volkswagen’s transaction is still subject to merger control clearance by antitrust authorities, the company stated. Matthias Müller and Shahar Waiser will be announcing further details in the coming week.