The on-demand ride-hailing and ride-sharing service continues to be very competitive. Gett, the startup based in New York, whose business is for the most part in 60 cities in Europe, will receive an investment of $300 million from German carmaker Volkswagen.
VW will use this investment as a spearhead for its own move into the industry of ride-hailing, on-demand transport and self-driving vehicles.
A true valuation of Gett is not available following the deal with VW, but in November of 2015, a publication in Israel said Gett was attempting to gain debt funding at a valuation of $2 billion, after previously being valued at just over $575 million.
Shahar Waiser the CEO and co-founder of Gett said that Volkswagen was the only investor in its latest round of funding.
Gett now has raised over $520 million of funding with other investors being Kreos Capital and Access Industries. The company said it was profitable in a number of cities with revenues annually of more than $500 million.
VW is the largest automaker in Europe, with other brands such as Porsche, Lamborghini, Audi and others that fall under its expansive umbrella of ownership.
While the $300 million is not a small amount of money and is a big win for the ride-hailing company, it is a small sum relatively for the German carmaker, which reported 2015 revenues of more than $238 billion.
However, VW posted a $1.8 billion loss in for that period following the fallout over the scandal in its emissions systems that affected over 11 million of its vehicles.
Due to that, the investment by VW is a way for the company to point to its future and put some of the negative news of 2015 behind it.
The investment by VW is its first in a fleet of different startups building up the ride-hailing transportation market, but it is not the first one they have worked with.
GM recently invested $500 million with Lyft a big competitor of the industry’s leader Uber, to build its own business in that area spearheaded from the Maven launch and the purchase that followed of Cruise, a startup specializing in self-driving vehicles.
A few years ago, some automakers attempted to enter the market through acquisitions, such as Daimler in 2014 acquiring RideScout.
Waiser co-founded Gett with Rio More and said there are a number of reasons why the Gett partnership with VW is good, as VW is the largest carmaker in Europe with 25% market share when all its brands are included.