In a move that shakes up the Israeli transportation scene, Pango, the leading Israeli parking app, has acquired taxi-hailing giant Gett for $175 million. The deal was signed on Thursday, marking a significant consolidation within the mobility sector.
Gett’s shareholders will receive approximately $175 million for all of the company’s shares. In addition, the shareholders will also receive Gett’s cash reserves of about $40 million.
Gett’s Journey: From Highs to Acquisition
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Launched in 2010, Gett took the Israeli taxi industry by storm. Their app provided a convenient alternative to hailing cabs on the street, offering transparent pricing and real-time tracking. Gett has faced challenges, however. The company initially operated in multiple international markets but scaled back to focus on its core Israeli market. This decision, along with the global economic slowdown in 2023, likely contributed to a decline in Gett’s valuation.
Gett has raised $900 million, but the company’s valuation declined from $1.5 billion four years ago. Swedish fund VNV Global (43%) is the major shareholder after a total investment of $107 million. Other investors like Len Blavatnik and Baring Vostok fund are likely to write a loss.
Looking Back: The Journeys of Pango and Gett
Founded in 2006, Pango revolutionized the way Israelis pay for parking. Their user-friendly app allows drivers to pay for parking on-the-go, eliminating the need for cash or meter feeding. Over the years, Pango has expanded its offerings, integrating electric vehicle charging stations and even partnering with municipalities for wider traffic management solutions.
The Deal: A Strategic Alliance
While the $175 million price tag falls short of Gett’s peak valuations, it represents a strategic win for both companies. Pango has gained a dominant position in the Israeli mobility landscape. By integrating Gett’s taxi-hailing services with its existing parking solutions, Pango can offer users a seamless one-stop shop for all their urban transportation needs. Imagine booking a parking spot and a taxi ride simultaneously – a future convenience facilitated by this merger.
Potential Synergies and Challenges
The combined entity boasts a massive user base, valuable data on user behavior, and a strong presence across Israel. This opens doors for exciting possibilities, such as an enhanced user experience. A unified app for parking, taxi hailing, and potentially even additional mobility services like micro mobility rentals would significantly improve user convenience. Pango also can leverage Gett’s user data to optimize parking availability in areas with high taxi demand, reducing congestion. The move can give Pango opportunities for expansion into new markets, offering its comprehensive mobility solutions on a wider scale.
However, challenges also lie ahead. Pango and Gett will face continued competition from ride-hailing giants like Uber and local players offering similar services. Maintaining a competitive edge will be crucial
A New Era For Israeli Mobility
With a combined user base and a focus on innovative solutions, the new entity has the potential to become a dominant force in urban mobility. Whether they can effectively overcome the challenges of integration and navigate the competitive landscape will determine their long-term success.
This acquisition also raises questions about the future of the Israeli taxi industry. Will Gett’s services be further integrated with Pango’s offerings, potentially blurring the lines between taxis and app-based ride-hailing? How will this impact traditional taxi drivers and their livelihoods?
