BERLIN (Reuters) - German carmaker Volkswagen (VOWG_p.DE) will write off its investment in Gett after the Israel-based ride hailing app failed to gain ground on bigger rivals Uber [UBER.UL], Lyft and Didi, weekly Der Spiegel reported on Friday.
Volkswagen invested $300 million in Gett in 2016, saying it aimed for on-demand mobility services such as smartphone ride hailing to earn a “notable share” of future revenues.
Gett raised another $80 million from major shareholders including Volkswagen and Access Industries in a funding round in June valuing the company at $1.4 billion.
Spiegel cited sources as saying that Volkswagen has already written down the value of its Gett holding to 16 million euros ($18.3 million).
Volkswagen declined to comment.
Reporting by Maria Sheahan; Additional reporting by Joern Poltz; Editing by Keith Weir