The Volkswagen Group has announced a strategic investment of US$ 300 million (Rs 2,025 crore) in global ride-hailing provider, Gett. Gett, formerly known as GetTaxi, operates in 60 cities worldwide.

The ride-hailing market represents substantial market potential in on-demand mobility while creating the technological platform for developing future mobility business models. The Volkswagen Group’s aims to generate a substantial share of sales revenue from the new business model by 2025.

Commenting on the latest development, Matthias Muller, chairman of the board of management of Volkswagen AG said, “Alongside our pioneering role in the automotive business, we aim to become a world leading mobility provider by 2025. 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.”

Meanwhile, Gett’s business model is based exclusively on licensed drivers who have a permit to carry passengers, providing safe and reliable mobility.

“The Volkswagen Group and Gett is a great strategic partnership. 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,” commented Shahar Waiser, Gett’s founder & CEO.

Through the Gett app, consumers can book on-demand rides instantly or pre-book rides for later. Besides transportation, Gett also covers delivery and logistics. Based on a strategic alliance agreement, the partnership’s joint growth strategy is focused on the market expansion of on-demand mobility services in Europe and beyond.