May 25, 2016 04:58 AM EDT
Volkswagen Invests In Uber's Main Rival Gett, Pumps $300M For New Deal

Despite the many problems that Volkswagen is facing stemming from the emissions scandal and now their hybrid cars, the German automaker has invested $300 million the main rival of Uber in the United States and Europe, Gett.

Mashable reported that Volkswagen's move is a strategic investment and their chairman of the board, Matthias Müller added that the investment is their first milestone to provide mobility solutions. Gett, on the other hand, released a statement saying that they are thrilled to partner with Volkswagen Group, whom they called the number one global car manufacturer. The statement was made by Gett's Founder and CEO Shahar Waiser.

Although Volkswagen has been facing some setbacks, Gett having closed the deal means that they will be able to access capital for their aggressive in Europe and the United States specifically in New York City. Gett did not comment when asked about their reservations about partnering with the German automaker due to the diesel emissions scandal.

Auto Blog reported that as per the announcement of Volkswagen, they feel that Gett is one of the fastest growing ride hailing prover in the mobility-on-demand area. They also believe that their partnership with Gett promises a strong growth momentum and huge earning opportunities in the coming years. Alongside the partnership, Volkswagen aims to become the world leading mobility provider by 2025.

In London alone, half of the cabs use Gett and it is available in more than 60 cities all over the world. Via the Gett app, consumers can book on-demand rides or pre-book rides for a later time. Gett also started a delivery and a courier service last year.

Fortune reported that Volkswagen is not the only automaker who have joined the ride-hailing industry. Toyota recently announced their partnership with Uber while Lyft and GM have made a $500 million deal earlier this year. Apple also made deals with China's Didi Chuxing.

Gett has raised more than $500 million since it was first launched. However, its rivals Uber, Lyft, and Didi Chuxing have raised billions since venturing into the ride-sharing business.

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