German manufacturer Volkswagen Group (VW) has launched a strategic partnership with on-demand mobility provider Gett, as the first substantial step in a transition from manufacturing to structuring and providing integrated mobility.

VW invested $300m (£206m) in Gett at the end of May, and said the ride-hailing market represented the greatest market potential in on-demand mobility at the time, although details of what the investment would result in remained vague.

Now though, Matthias Müller, chairman of the board of management at VW FS, has said: "Ride hailing will be at the center of our new ‘mobility on-demand’ business, which we are building up as the second pillar alongside the classic automobile business."

The Gett investment has given the German company instant access to such a mobility on demand service, he added.

This second pillar will be led by a special team led by Ole Harms, head of new business and mobility. Harms said: "The new strategic partnership marks the point where the Volkswagen Group starts taking an active part in shaping the future of mobility. This is not just about linking up individual services, but about creating an integrated mobility ecosystem centered on people and the environment."

The VW-Gett partnership will include attractive terms on Volkswagen automobiles for Gett drivers, and special package offers to pool various costs such as purchase or finance as well as the necessary insurance and servicing together. A special chauffeur service featuring premium brands is also being considered. Gett will also launch in Germany in the first half of 2017.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"For Volkswagen, the strategic partnership marks a significant initial building block in its Strategy 2025 to realign the Group for the future of mobility. The Volkswagen Group intends to generate a substantial share of sales revenue from innovative mobility services by 2025," VW wrote.