December 21, 2018 / 1:40 PM / 6 months ago

Volkswagen to write off Gett investment - Spiegel

Volkswagen logos are pictured during the media day of the Salao do Automovel International Auto Show in Sao Paulo, Brazil November 6, 2018. REUTERS/Paulo Whitaker

BERLIN (Reuters) - German carmaker Volkswagen (VOWG_p.DE) will write off its investment in Gett after the Israel-based ride hailing app failed to gain ground on bigger rivals Uber [UBER.UL], Lyft and Didi, weekly Der Spiegel reported on Friday.

Volkswagen invested $300 million in Gett in 2016, saying it aimed for on-demand mobility services such as smartphone ride hailing to earn a “notable share” of future revenues.

Gett raised another $80 million from major shareholders including Volkswagen and Access Industries in a funding round in June valuing the company at $1.4 billion.

Spiegel cited sources as saying that Volkswagen has already written down the value of its Gett holding to 16 million euros ($18.3 million).

Volkswagen declined to comment.

Reporting by Maria Sheahan; Additional reporting by Joern Poltz; Editing by Keith Weir

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