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Indonesia's Go-Jek Raises $550M Funding Led by @KKR_Co, Warburg Pincus

Indonesia's Go-Jek Raises $550M Funding Led by @KKR_Co, Warburg Pincus

China’s ride-sharing leader Didi Chuxing agreed to acquire UberChina. Now Didi and Japanese giant SoftBank are said to be leading a $600 million investment in Singapore’s ride-hailing behemoth Grab (GrabTaxi, GrabCar, GrabBike), Uber’s most powerful rival in Southeast Asia. Motorcycle taxis are a very common form of unlicensed transport in Indonesia, where they are known as ojek. The motorbike taxis typically carry one passenger, who rides as the pillion behind the driver. Multiple passengers are common in some countries. Ojek can be found throughout Indonesia, from towns where traffic jams commonly hinder other forms of transport, to rural areas inaccessible by four-wheeled vehicles. Because of traffic, ojek are often the fastest form of transport, especially in Jakarta. Many people choose them over taxicabs, which are safer, but slower and more expensive. The widespread availability of cheap, domestic motorcycles made by Honda, Yamaha, and Suzuki, and even cheaper ones imported from China, as well as credit schemes with which to purchase these, have resulted in the rapid growth of ojek. The ease with which driver’s licenses can be obtained has also been a contributing factor. Founded in 2010, Go-Jek is the first Indonesian mobile platform that touches across socio-economic classes and verticals at a high transaction frequency that includes transportation, food delivery, same-day delivery, grocery shopping, household cleaning, beauty and health and ticket sales. Go-Jek’s motorcycle transport service, Go-Ride, is the biggest service of its kind in Indonesia with more than 200,000 drivers. Outside of motorcycle transport, Go-Food is the second largest on-demand food delivery service in the world outside of China with over 15 million meals delivered since inception. Go-Pay, launched in April 2016, is now a fast-growing e-wallet solution in Indonesia. With credit card penetration in Indonesia at under 2% and online payment nascent, Go-Pay is essential in enabling a seamless transaction experience on Go-Jek services. Go-Jek and Go-Pay are best-positioned to capture wallet share from a growing online user base. Go-Jek’s mobile applications have been downloaded more than 20 million times as of June 30, 2016. In June 2016 only, there were over 20 million bookings on the Go-Jek platform, translating to roughly eight bookings per second being processed in that month. “Go-Jek is unique in its ability to be the number-one service provider across almost all key categories and the company has a real opportunity to strengthen its position as a leading mobile platform in Indonesia,” said Terence Lee, Director at KKR Asia. “We are excited to partner with Nadiem, Kevin, Andre and the entire Go-Jek management team. With a rapidly expanding middle class, increasing urban density and a young demographic that is internet savvy, Go-Jek is well positioned to become the ‘go to’ platform for high frequency daily services including transport, food, logistics and payment,” said Jeffrey Perlman, head of Southeast Asia for Warburg Pincus. “KKR, Warburg Pincus, Farallon, Capital Group and other participants in this fundraise not only bring global experience in the TMT sector, but they are also experienced local partners. With their support and investment, Go-Jek is poised to build on its initial success to become the largest on-demand application of choice for all Indonesians and improve the daily lives of more than 200,000 motorcycle and car driver partners, more than 35,000 Go-Food merchants whose businesses we helped grow and more than 3,000 service providers on our other on-demand services,” said Go-Jek co-founder and CEO Nadiem Makarim, a former McKinsey associate and Harvard MBA graduate. Indonesia, with the world’s fourth-largest population of more than 250 million people, is rapidly becoming a digital nation. Indonesia has 88.1 million active internet users and 36 percent of the population carry smartphones. Half of all smartphone users in Jakarta are users of Ojek mobile app services, having at least one such mobile app installed on their smartphones, according to Asian market research agency Cimigo. “Almost everyone in the mobile app Ojek market have used Go-Jek, a third have used GrabBike – usage of other brands is rare,” it says.]]>

Volkswagen Invests $300M in Gett On-Demand Mobility App

Volkswagen Invests $300M in Gett On-Demand Mobility App

Gett launched a bid to acquire London’s Radio Taxis from Mountview House Group in a multi-million pound deal that will bring the total amount of Gett black cabs in London to 11,500 or half of all the licensed taxis in the city. “Alongside our pioneering role in the automotive business, we aim to become a world leading mobility provider by 2025,” says Matthias Müller, chairman of the board of management of Volkswagen. “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.” “Just one month after announcing plans to launch a legally independent company for the development of mobility services, the Volkswagen Group is resolutely driving forward the future of mobility,” VW said in a statement. “The Volkswagen Group opens the way for new mobility concepts with a significant $300 million stake in Gett. On the map with over 60 cities worldwide, Gett is one of the fastest growing ride hailing providers in the mobility-on-demand area. Based on a joint strategy, according on-demand mobility services will be further expanded,” VW stated further. Innovative, digitally integrated services covering all aspects of mobility promise very strong growth momentum and huge earnings opportunities in the coming years. The ride-hailing market represents the greatest market potential in on-demand mobility, while creating the technological platform for developing tomorrow’s mobility business models. “The Volkswagen Group’s expressed goal is to generate a substantial share of sales revenue from such new business models by 2025. To this end, the Group is opening for new partnerships and strategic investments,” says VW. “A key partner in this area will be Gett, one of the leading providers in the European ride hailing market with development facilities in Israel.” Gett is available in more than 60 cities worldwide, including London, Moscow and NYC. In London alone, half of all the black cabs use Gett. Uniquely, Gett’s convenient and at the same time highly efficient mobility solution is equally successful with consumers and businesses. It is already trusted by more than 4,000 leading corporations worldwide. The business model is based exclusively on licensed drivers who have a permit to carry passengers and are committed to providing safe, 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,” said Shahar Waiser, Gett’s founder and CEO. Through the Gett app consumers can, at the touch of a button, book on-demand rides instantly or pre-book rides for later. Besides transportation, Gett covers innovative delivery and logistics. Gett’s technology leverages big data, cutting-edge predictive algorithms, and artificial intelligence. “It therefore serves as the foundation for a viable on-demand autonomous car operation,” says VW. With the support of the Volkswagen Group, one of the world’s largest carmakers, Gett will further strengthen its position in the market. Based on a strategic alliance agreement, the partnership’s joint growth strategy is focused on collaborative development and market expansion of on-demand mobility services in Europe and beyond. Completion of this transaction is ssubject to merger control clearance by antitrust authorities. Matthias Müller and Shahar Waiser are expected to announce further details of the strategic partnership in a joint event scheduled for the coming week, said VW. Gett was founded in 2011 by Israeli entrepreneurs Shahar Waiser, CEO, and Roi More, who developed a GPS-based application connecting customers and taxi drivers, enabling users to order a cab either via smartphone or the web. The app’s beta version started operating in Tel Aviv and was subsequently launched in London, Moscow and New York City. [caption id="attachment_430802" align="aligncenter" width="1024"]Shahar Waiser, CEO & Co-Founder of Gett Shahar Waiser, CEO & Co-Founder of Gett.[/caption] Waiser is a serial entrepreneur, who founded and built companies in the US and internationally. In 2000, he became the head of Russian operations at Comverse [NASDAQ: CMVT]. After moving to Silicon Valley in 2005 he founded and then sold Loyalize, a social engagement and loyalty startup based in San Francisco (acquired by Viggle [VGGL]).

“When he was 16 years old, Shahar (Waiser) Smirin boarded a train from Russia to Hungary and asked for political asylum. His parents stayed behind, and when he arrived, he did not have a penny to his name. He did, however, have a clear goal: to get to Israel. Now, (25 years later) he is one of the brightest technological entrepreneurs Israel has had.”

Haaretz

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Ride-Sharing App Via Raises $100M Series C Led by Pitango

Ride-Sharing App Via Raises $100M Series C Led by Pitango

Via is re-engineering public transit—from a regulated system of rigid routes and schedules to a fully dynamic, on-demand network. The Via algorithm matches, in real time, multiple passengers headed the same way with a single large SUV or van. Passengers request rides through a mobile app, and Via’s systems instantly select and, if necessary, re-route the vehicle that best matches the passenger’s route. Targeting the gap between outdated public transit and expensive luxury car services, the Via platform currently operates in New York City and Chicago, has provided more than four million rides, and is growing rapidly. Founded in 2012 by Daniel Ramot and Oren Shoval, who previously led engineering projects for the Israeli Air Force and have PhDs in neuroscience and systems biology from Stanford University and the Weizmann Institute of Science, respectively, the idea for Via came from Israel, where many people rely on shared vehicles called sheruts to travel quickly, cheaply and easily along major streets. Via is headquartered in New York, with offices in Tel Aviv and Chicago. Pitango, the leading venture capital firm in Israel, has been investing in technology entrepreneurs since 1993. With offices in Israel and Silicon Valley, California, Pitango currently manages over $2 billion in committed capital across several funds. Pitango Growth is a fund dedicated to investing in growth companies in their expansion and scale-up phases. To date, Pitango has invested in more than 210 companies, among them companies that have gone public, such as Varonis (NASDAQ: VRNS), and Borderfree (NASDA Q: BRDR), and companies that were acquired, such as Check (acquired by Intuit), dbMotion (acquired by AllScripts), Anobit (Acquired by Apple), Optonol (acquired by Alcon), and Ventor (acquired by Medtronic). Pitango invests in seed, early stage, and growth companies in the IT, Life Sciences, and Cleantech industries. 83North, formerly Greylock IL, is a global venture capital firm with more than $550 million under management. The fund invests in exceptional European and Israeli entrepreneurs, across all stages of consumer and enterprise companies. With offices in London and Tel-Aviv, 83North is the sum of the latitudes of these two main hubs of operation. 83North started as Greylock IL, and remains deeply rooted in the main US tech hubs, with over half of its portfolio companies having operations in the US. Hearst Ventures has grown since its initial investment in Netscape in 1995, to become one of the most active and successful corporate venture funds, with more than $1 billion in strategic investments in companies operating at the intersection of media and technology.]]>