German automaker Volkswagen has invested $300m in Israeli ride hailing provider, Gett, which competes with Uber, Lyft, and Didi Chuxing.
Volkswagen's investment comes months after General Motors injected $500m into privately held American transportation network firm Lyft.
Gett is available in over 60 cities globally, including London, Moscow and New York City. In London alone, half of all the black cabs use Gett.
Under the deal, Volkswagen and Gett will form a strategic partnership to share data and work on future projects.
The German carmaker will provide on-demand ride services to business customers, while Gett drivers will be offered discounts on Volkswagen cars to use as taxis.
Volkswagen plans to to generate a substantial share of its future sales revenue from new business models focused on mobility services.
The transaction is subject to merger control clearance by antitrust authorities. The partnership is based on a joint growth strategy to extend on-demand mobility services in Europe.
Volkswagen Aktiengesellschaft board management chairman Matthias Müller 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."
The business model of Gett is based on licensed drivers who are legally permitted to carry passengers.
Gett founder and CEO Shahar Waiser said: "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."
