Taxi app Gett sold to Israeli car parking firm Pango in $175m deal

Gett

Israeli parking payments app Pango has acquired ride-hailing app Gett in a deal worth $175 million (around £140m) – a fraction of the company’s $1.4 billion ($1.17bn) valuation in 2018.

Pango is buying the shares from a number of private venture capital investors, including Swedish-based Vostok New Ventures Ltd (VNV), Access Industries and MCI Capital. 

VNV confirmed it was selling its 43.4% holding in Gett for a net $83m (£66m), representing an 11.2% discount to the value of the stake as of March 31. Gett underwent a financial restructuring in 2022, resulting in it being debt free, with VNV Global as the largest shareholder.

Pango intends to keep Gett as a separate ride-hailing and delivery business. Gett was founded in Israel and operates there as well as in the UK, where it serves the London black cab market.

Pango CEO Jonathan Alon said he believed Gett had “exceptional business potential”.

“We are proud to sign an agreement for the purchase of an Israeli company by an Israeli company and see this as a vote of confidence in and strengthening of the Israeli economy, especially during these times,” he added.

“We have significant plans for further development of the company in its fields of expertise.”

Founded in Israel in 2010 as Get Taxi, Gett was one of the first taxi apps to hit the market. The company raised around $900 million in funds from investors, including Volkswagen Group.

But the company has struggled against more aggressive competitors such as Uber and FreeNow, and its valuation has plummeted from $1.4 billion in 2018. VW wrote off its investment of more than $300m after its value fell to just $16m in 2019.

Gett’s 2023 results were impacted by the Israel-Palestine conflict, though volumes in Israel have rebounded to 95% of pre-war levels. Gett was also last year awarded the contract to run the taxis at Tel Aviv airport. The deal will be completed on approval from the Israeli competition authority.