German automaker Volkswagen is going to write off its investment in Gett after the Israel-based ride hailing app failed to achieve ground on bigger competitors Uber, Lyft and Didi, weekly Der Spiegel reported on Friday.
Volkswagen spent $300 million in Gett in 2016, saying it intended for on-demand mobility services such as smartphone ride hailing to gain a “notable share” of future revenues.
Gett raised another $80 million from major shareholders consisting of Volkswagen and Access Industries in a funding round in June evaluating the company at $1.4 billion.
Spiegel mentioned sources as saying that the automaker has already written down the value of its Gett holding to 16 million euros ($18.3 million).
Volkswagen refused to discuss.