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.

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By GlobalData

"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.