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Money News

Adam Neumann invests in vehicle sharing provider GoTo Global

FILE PHOTO: Adam Neumann, chief executive officer of U.S. co-working firm WeWork, speaks during a signing ceremony in Shanghai, China April 12, 2018. Picture taken April 12, 2018. Jackal Pan via REUTERS/File photo

TEL AVIV (Reuters) - WeWork co-founder Adam Neumann has invested $10 million in GoTo Global as part of a $19 million funding round for the vehicle sharing service provider that operates in Israel and Malta.

The fundraising values GoTo Global, a subsidiary of Israel’s Shagrir Group Vehicle Services, at $30 million and Neumann will hold a 33% stake, the company said on Wednesday.

GoTo Global, which plans to expand in Europe this year, provides shared vehicles including cars, mopeds, bicycles and scooters. In 2019 it had revenue of $13.2 million and provided more than 1.3 million trips.

GoTo Global CEO Gil Laser said the alternative transportation market is expected to exceed $600 billion by 2025. The coronavirus pandemic increases the potential for the company’s market as people avoid public transportation, he said.

In May Neumann filed a lawsuit against Japan’s SoftBank Group and its Vision Fund for terminating a $3 billion tender offer to WeWork’s shareholders.

The office-sharing startup has gone through a tumultuous period since abandoning its initial public offering in September. It pushed out Neumann last year and has seen occupancy rates plummet amid the coronavirus pandemic.

Reporting by Tova Cohen; Editing by Steven Scheer

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