Taxi app Gett has acquired London's Radio Taxis for 'several million pounds' to help it take on Uber
Taxi app Gett has acquired rival firm Radio Taxis for an undisclosed sum to help it compete with Uber.
Like Uber, Gett's app allows people to hail a cab in a matter of minutes. Unlike Uber, however, Gett's service (in London) uses licensed black cab drivers.
Prior to today's acquisition, approximately 10,000 black cab drivers in London had downloaded the Gett app. The deal brings that number closer to 11,500, Gett said, or nearly half of all black cab drivers in London. While Gett's driver numbers are growing in London, it's still less than half the size of Uber, which has 25,000 drivers in the UK capital.
Through the cash deal, Gett will acquire all three brands within Radio Taxis' parent company, Mountview House Group. The Mountview House Group also operates Xeta, another black cab brand, as well as One Transport, a transportation platform that provides businesses with access to vehicles.
A Gett spokesman spokesman said the acquisition, which is subject to shareholder approval, is worth "several million pounds."
Remo Gerber, managing director of Gett in western Europe, told Business Insider in February that he thinks Gett, Uber, and a number of other taxi companies can coexist in London. "I don’t believe in killing, I believe in competition," he said. It’s a very large market It’s not a winner takes all.
"I also don’t think being in every country in the world gives you a competitive advantage. Uber obviously has a leadership in the US. We are very focused on black cab market, which is a multi billion dollar market in London alone."
Gett also operates in Israel (where it was founded), the US, and Russia. In the UK, Gett is available in a number of other cities, including Manchester, Edinburgh, and Leeds. The company posted revenues of $300 million (£208 million) in 2015 and Gerber said he expects that number to rise in 2016.
Source: Business Insider UK
