On-demand ride service company Gett, a partner of Volkswagen, has agreed to buy U.S. rival Juno for $250 million, German magazine Capital reported, without citing the source of the information.
Volkswagen last year announced it would invest $300 million in Gett to underpin its new mobility services as Europe’s largest carmaker makes a strategic shift to overcome a diesel emissions scandal.
The deal has support from VW and is aimed at improving Gett’s expansion prospects in the United States, Capital magazine said.
Gett had no immediate comment and VW did not respond to requests seeking comment.
VW said last June its cooperation with Gett may lead to business models involving car sharing, limousine rides and taxi services in the fast-growing ride-hailing market, which in Europe alone may yield 10 billion euros ($10.87 billion) of sales by 2025 and could grow more than 30 percent annually.
Carmakers have been investing in mobility companies including Uber and Lyft, Uber’s main U.S. rival, responding to changing consumer trends as people increasingly choose to forego vehicle ownership and buy transportation by the mile or the minute