VW-Backed Ride-Hailing Company Gett Buys Juno for $200 Million
The deal is a win for Gett—and a serious blow for Juno's drivers.
The proliferation of ride-hailing apps may be coming to an end. Gett, a ride-hailing company backed by Volkswagen, is purchasing New York area rival Juno in a deal worth $200 million, the company announced on Wednesday.
The two companies will eventually be merged together under a single banner, said Gett spokesperson Jacqui Wimberly, according to Reuters.
The move comes as Gett is reportedly in the process of seeking $700 million in capital in order to grow its business, according to Bloomberg. The company received a $300 million strategic investment from the Volkswagen Group in May 2016.
The deal gets Gett all of Juno's drivers—but it comes as a blow to them, as the people shuttling riders about received stock in the company as part of Juno's efforts to be a more driver-centric alternative to Lyft and Uber. Under the terms of the Gett deal, those restricted stock units, as they're known, effectively lose all their value.
Gett, which operates in more than 100 cities across the U.S., Europe, Russia, and its homeland of Israel, has endeavored to grab market share in the New York area for some time. In 2015, Gett launched an NYC-based ad campaign specifically and cheekily targeting Uber.