Israeli parking payments app inks deal to buy ridesharing startup Gett for $175m
Pango says the ride-hailing taxi app will continue to operate under the Gett brand following the acquisition, which is still subject to regulatory approvals
Sharon Wrobel is a tech reporter for The Times of Israel.
Israeli parking payments app Pango said on Thursday that it inked an agreement to snap up ridesharing taxi app Gett in a deal worth $175 million.
Pango is buying the Israel-based ride-hailing app from its shareholders Stockholm-listed investor Vostok New Ventures Ltd (VNV), Access Industries and MCI Capital. VNV said it is selling its 43.4 percent holding in Gett for a net $83 million, representing an 11.2% discount to the value of the stake as of March 31.
The completion of the acquisition is subject to approval by the Israeli Competition Authority.
The deal will see the two companies continue operating as independent and separate transportation entities and is not expected to impact their workforces, they said in a statement. Pango will keep the ride-hailing and delivery services under the Gett brand, while retaining its global teams and markets in Israel and the United Kingdom.
Commenting on the deal, Pango CEO Jonathan Alon said that he “strongly believes in Gett as a growing and profitable company, with 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,” Alon remarked. “We highly appreciate the role that Gett has played in transforming the ride-hailing industry in Israel and abroad.”
“We have significant plans for further development of the company in its fields of expertise,” he added.
Founded in 2010, Gett operates ride-hailing services in Israel as well as in London and other cities in the UK, where the company offers black cab taxis on demand. To date, Gett has raised some $900 million in funds from investors and has seen its valuation drop from $1.4 billion in 2018. Back in September, Gett won the Israel Airports Authority’s tender to operate taxi services from Israel’s Ben Gurion Airport to all parts of the country.
In February, ridesharing startup cautioned that its results in 2023 were impacted by the outbreak of the war with Hamas following the October 7 onslaught by the terror group on southern Israel.
“After a record performance in the first three quarters, full year results were affected by the conflict in Israel, where despite a short-term drop in ridership, performance rebounded to over 80% of the previous run-rate by the end of the year,” Gett said.
In its financial report for the first three months of 2024, VNV said that despite the negative impact of the war on Gett’s operations, the ride-hailing app closed the full year 2023 “ahead of budget.”
“Gett delivered a strong performance during 1Q24 [first quarter of 2024],” VNV said in a filing. “Volumes in Israel have rebounded to 95% of pre-war levels and the recently launched airport service at Ben Gurion airport is ramping up at pace.”
Founded in 2007, the Pango app allows its more than 3 million users to pay for parking, toll roads, rescue services, refueling services and even purchases at Sonol convenience stores. The smart parking app is owned by the Israel Infrastructure Fund and Milgam Ltd.