Adam Neumann-Backed GoTo Global Acquires German Moped-Sharing Startup
Adam Neumann-Backed GoTo Global Acquires German Moped-Sharing Startup
(Bloomberg) -- GoTo Global Mobility Ltd., the Israeli mobility company backed by WeWork Cos. co-founder Adam Neumann, is acquiring moped-sharing startup Emmy to enter the German market.
GoTo, whose app enables members to book cars, scooters and bikes, will add those modes of transportation to Emmy’s existing service comprised of more than 3,000 electric mopeds in Berlin, Hamburg and Munich. The company has amassed 350,000 users since its founding in 2015.
By charging small membership fees and targeting daily commuters rather than tourists or one-time users, GoTo has built a business model it pitches similarly to how Neumann plugged WeWork. Chief Executive Officer Gil Laser refers to GoTo’s customer base as a “community” that the company is “building a relationship” with. And as was the case at WeWork when Neumann was CEO, GoTo is trying to expand fast.
“We have really hungry shareholders that really want to accelerate the company and want this growth, so I totally believe this will not be the last acquisition or merger,” Laser said in an interview. “The market is ready for consolidation between companies.”
Neumann, 42, invested $10 million for a 33% equity stake in GoTo in July of last year. The company will use stock to acquire Emmy, which will dilute the billionaire’s holding to about 25%, Laser said. Ilan Stern, the chief investment officer of 166 2nd LLC, Neumann’s family office, is a director on GoTo’s board.
Tel Aviv-based GoTo already operates in Israel, Malta and Spain, and has ambitions to be in every major European city by mid-decade. The company expects to double revenue this year and exceed 100 million euros ($116 million) annual sales by the end of 2023.
GoTo recently raised $22.5 million and is in the midst of another investment round, which Laser expects to bring in a bigger sum of cash and help the company expand into new markets.
“People understand why multi modality is the right way in the mobility world,” Laser said. “We can present that it’s working. We can present the data after 4 million rides.”
©2021 Bloomberg L.P.