Israeli tax hailing app company Gett is seeking a buyer, "Bloomberg" reports. The company, which has been valued in the past at more than $2 billion, is looking for buyers in a bid to compete with larger rivals, people familiar with the matter told "Bloomberg."
Gett has approached potential bidders including other car-hire firms, the sources told "Bloomberg," asking not to be identified because the discussions were private. Gett may sell its entire business or offload regional operations outside of its home market, two of the people told "Bloomberg," while another said that the Israeli company may also weigh a listing, partnership or sale of a minority stake to raise capital.
A Gett spokesperson told "Bloomberg,' "As Gett is on a clear path towards profitability globally, including the US, in the first half of 2019 it should not be surprising that Gett may receive inbound inquiries from strategic partners."
In 2016, Volkswagen invested over $300 million in Gett, seeing the Israeli company as a potential rival to Uber Technologies Inc. and Lyft Inc. In 2018 so far, Gett has raised $80 million from investors including Swedish fund manager Vostok. In its third quarter report, Vostok noted that Gett's value had been cut by 14% to $1.4 billion, due to fierce competition in the tax-hailing sector. Volkswagen is also investing in German taxi hailing app Moia.
Gett is also reportedly considering leaving the US market, even though in the past it made a major investment by acquiring US company Juno for $200 million. Gett remains strong in the UK, Russia and Israel and overall operates in 120 cities. Gett was founded in 2010 by CEO Dave Waiser and Roi Mor and has raised $700 million to date.
Published by Globes, Israel business news - en.globes.co.il - on November 18, 2018
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