European ride service Gett has bought U.S. rival Juno for $200 million in a deal that even more combined the ride-hailing market which some said short-changed Juno motorists.
Gett, an on-demand ride service that is a partner of Volkswagen, stated on Wednesday it had purchased New York-based startup. The deal grows Gett’s driver lineup and geographical footprint, and much better positions it to compete with bigger firms such as Lyft and Uber.
Gett will acquire all of the firm’s business, including drivers and staff members. Juno operates just in New York, while Gett remains in over 100 cities, generally in the United Kingdom, Russia and Israel. Drivers of Gett and Juno will in the short-term drive on separate platforms, each firm keeping its own brand, but ultimately they will be integrated into a single platform, stated Gett spokesperson Jacqui Wimberly.
Juno had actually positioned itself as a more driver-friendly option to Uber, offering its operators stock alternatives in the business when they signed on. However with the acquisition, those limited stock systems, or RSUs, will end up being nearly worthless.
Ryan Price, executive director of the Independent Drivers Guild, which promotes for American company’s operators, stated in an email that the company was “leaving the drivers who assisted build the company with next to nothing.”
A spokesperson for American ride hailing firm did not immediately respond to a request for remark.
“Juno sold its ’employees’ (motorists) on equity which ultimately won’t be worth jack,” Anand Sanwal, CEO of venture capital research firm CB Insights, tweeted on Wednesday.