Gett said Wednesday it was buying rival Juno for $200 million.
Uber has been rocked by scandals and bad press in recent months, including accusations of sexism in the workplace, mistreatment of drivers, abusive behavior by CEO Travis Kalanick and belligerent business practices, including reportedly dispatching employees to order and cancel thousands of rides from Lyft drivers.
Volkswagen (VW) a year ago announced it would invest $300 million in Gett to underpin its new mobility services as Europe's largest carmaker makes a strategic shift to overcome a diesel emissions scandal.
Founded in Israel in 2010, Gett employs over 1,000 people in Tel Aviv, the USA, the United Kingdom, and Russian Federation.
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Gett also confirmed it will be raising more money.
Gett received a $300 million strategic investment from Volkswagen Group VOW, -0.04% in May 2016.
One of Juno's selling point to drivers was being much friendlier to and financially lucrative for drivers. But, since Gett wants to offer drivers similar "long term value sharing", it's likely that drivers may again be in a position to receive stock. The stock options are nulled with the acquisition and will be paid out, TechCrunch reported.
The companies did not immediately disclose terms, but the news site TechCrunch reported that Gett had paid $200 million for Juno, which launched in NY previous year. While Uber has been under fire for its treatment of drivers, Juno's slogan is "Juno treats drivers better". Furthermore, Gett will continue to offer drivers 10 percent commission and 100 percent of all tips - perks that both Gett and Juno offered before they became one company.
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