Volkswagen pumps $300 million in to Uber rival Gett
Even scandal-plagued car companies need to plan for the future.
Volkswagen is making a $300 million strategic investment in Gett, one of Uber's main rivals in the U.S. and Europe, the two companies announced Tuesday.
Matthias Müller, Volkswagen's chairman of the board, framed the investment as "the first milestone on the road to providing integrated mobility solutions." Translation: this is Volkswagen's first big bet on car sharing as a business.
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The investment also comes with the added benefit of getting Volkswagen some headlines that aren't related to its never-ending diesel emissions scandal.
For Gett, the deal provides a clear partnership with what is still a major automotive company -- scandal or not -- as well as access to ample capital for aggressive expansion in Europe and New York City.
“We are thrilled to partner with the Volkswagen Group, the #1 global car manufacturer,” Shahar Waiser, Gett’s founder and CEO, said in a statement.
Waiser and Gett declined our request to comment whether Volkswagen's scandal gave it any reservations about entering into this strategic partnership.
Gett has now raised more than $500 million to date, which sounds like a lot -- until you remember that ride-hailing services like Uber, Lyft and Didi Chuxing have each raised billions.
Volkswagen is certainly not the only traditional car company stepping into the ride-hailing market. Earlier this year, General Motors invested $500 million in Lyft and announced a partnership to develop a fleet of self-driving cars.
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Seth Fiegerman was a Senior Business Reporter at Mashable, where he covered startups, marketing and the latest consumer tech trends. He joined Mashable in August 2012 and is based in New York.Before joining Mashable, Seth covered all things Apple as a reporter at Silicon Alley Insider, the tech section of Business Insider. He has also worked as a staff writer at TheStreet.com and as an editor at Playboy Magazine. His work has appeared in Newsweek, NPR, Kiplinger, Portfolio and The Huffington Post.Seth received his Bachelor of Arts from New York University, where he majored in journalism and philosophy.In his spare time, Seth enjoys bike riding around Brooklyn and writing really bad folk songs.
