Automotive corporations have officially entered the crowded ride-sharing space, placing hefty bets on the ride-hailing companies that are currently battling it out to revolutionize transportation.
In the recent months, Ford, Google and Uber formed an alliance to help bring self-driving cars to market, while Lyft and General Motors partnered to test a self-driving fleet of vehicles over the next year. Today, Volkswagen announced a $300 million investment in Gett, an on-demand ride-hailing service that provides riders with flat rates that never surge.
Gett launched in Tel Aviv in 2011 and has since expanded to 57 cities worldwide. The company first came to New York City in 2012 to alleviate the pain that many Uber and Lyft customers felt from surge pricing in a city known for its ride-hailing and heavy traffic. As such, Gett began experimenting with a deal that provided a flat fee for New Yorkers to travel throughout the city, free of surge pricing. Now, Gett is the only on-demand black car app in New York that provides flat rates that never surge, regardless of weather, traffic, or demand. Customers can hail a Gett car for a $10 ride anywhere in Manhattan below 110th Street.
Volkwagen’s partnership with Gett is a strategic one, which is based on a joint growth strategy to expand on-demand mobility services in Europe.
“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, in a statement. “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.”
Volkswagen also expressed that the long-term goals of this deal expand to self-driving cars. Gett’s technology leverages predictive algorithms, big data and artificial intelligence — all of which provide a “foundation for a viable on-demand autonomous car operation.”
“The Volkswagen Group and Gett is a great strategic partnership,” said Shahar Waiser, Gett’s founder and CEO, in a statement. “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.”
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