BackGett acquires New York’s Juno in $200 million deal to take on Uber
Tel Aviv-based Gett will pay $200 million to acquire Juno, a New York start-up that endeared itself to drivers by offering company stock and better pay than Uber
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New York: Two small ride-hailing companies are combining in an effort to slow the march of Uber Technologies Inc. around the globe. Tel Aviv-based Gett Inc. said it’s paying $200 million to acquire Juno, a New York startup that endeared itself to drivers by offering company stock and better pay than Uber.
The Gett app is available in about 100 cities and is among the most popular ride-hailing services in Europe. But Uber has been gaining ground quickly there and is dominant in Juno’s sole market, New York City. Gett said the team behind Juno will oversee the combined US group, which includes Gett’s operations in New York. The deal was reported earlier on Wednesday by TechCrunch.
Juno’s strategy of catering to drivers has been effective in New York. Drivers said they like that Juno takes a lower commission than Uber or Lyft Inc. and appreciate the ability to take a stake in the business. By last summer, Juno had nearly overtaken Lyft by total drivers in New York, although it began to lose ground in the fall, according to statistics kept by the local taxi regulator. In recent months, Juno has been exploring an expansion into other American cities.
The deal marks the end of Juno’s program to distribute restricted stock units to drivers, according to Keren Kessel, a spokeswoman for Juno. She said eligible drivers will receive a payout “based on an independent valuation" of their stock. She declined to provide details on how much drivers should expect to receive. In the future, drivers will be eligible to receive cash bonuses, Kessel said. Bloomberg
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