Auto giants Toyota Motor Corporation and Volkswagen Automotive Group have joined the ride hail industry movement as major carmakers are now seeing a future that includes less private ownership and more car sharing.
Toyota and ride hail leader Uber announced a partnership. The companies have entered into a memorandum of understanding (MOU) to explore collaboration, starting with trials, in the world of ridesharing in countries where ridesharing is expanding, taking various factors into account such as regulations, business conditions, and customer needs. As part of the partnership, Toyota Financial Services Corporation and Mirai Creation Investment Limited Partnership are making a strategic investment in Uber.
As part of the partnership, the companies will create new leasing options in which car purchasers can lease their vehicles from Toyota Financial Services and cover their payments through earnings generated as Uber drivers. The leasing period will be flexible and based on driver needs. This initiative builds on Uber’s current Vehicle Solutions program.
“Ridesharing has huge potential in terms of shaping the future of mobility. Through this collaboration with Uber, we would like to explore new ways of delivering secure, convenient and attractive mobility services to customers,” said Shigeki Tomoyama, senior managing officer of Toyota Motor Corporation and president of the Connected Company, one of Toyota Motor Corporation’s recently created in-house companies.
“We’re excited that Toyota, the largest automobile manufacturer in the world, is making a strategic investment in Uber as part of a broader global partnership. Toyota vehicles are among the most popular cars on the Uber platform worldwide and we look forward to collaborating with Toyota in multiple ways going forward, starting with the expansion of our vehicle financing efforts,” said Emil Michael, chief business officer of Uber.
Toyota and Uber also will explore collaboration in a variety of other areas, such as developing in-car apps that support Uber drivers, sharing knowledge and accelerating their respective research efforts, and establishing a special fleet program to sell Toyota and Lexus vehicles to Uber drivers.
Volkswagen focuses on European market
Volkswagen Group and ride hail provider Gett also recently announced a partnership that focuses on the European market.
The Volkswagen Group and Gett laid the cornerstone for their strategic partnership at a kick-off event at the DRIVE Volkswagen Group Forum in Berlin. For the Volkswagen Group, this marked the first substantial step in the transition from car making to structuring and providing integrated, sustainable mobility.
Volkswagen Group made a $300 million strategic investment in Gett, paving the way to new approaches to mobility. VW’s Matthias Müller stressed the importance of the strategic partnership at the Berlin meeting.
"The ride hailing market doesn't just promise high growth rates for Volkswagen, it also has a big strategic relevance. Ride hailing will be at the center of our new ‘mobility on-demand' business, which we are building up as the second pillar alongside the classic automobile business," said Müller. "Our investment in Gett gives us instant access to a service which people all over the world can benefit from."
Müller said Gett technology already contains algorithms that are incredibly accurate in predicting consumers' need for on-demand transportation. Based on that technology, Gett and the Volkswagen Group will work closely together to gain an even better understanding of users' mobility needs in cities and to offer tailor-made solutions. In that context, they will also explore areas of cooperation involving autonomous driving.
Volkswagen's global presence will help accelerate the pace and strength of Gett's international business, according to the company.
"The Volkswagen Group and Gett is a great strategic partnership, giving us access to 100 million Volkswagen automobile customers," said Gett founder and CEO Shahar Waiser. "We already provide the quickest, safest, most reliable on-demand mobility solution. Together with Volkswagen, we can further add to our range of products and services.”
At Volkswagen, the joint growth strategy will be driven by Ole Harms, head of New Business & Mobility. "We aim to establish ourselves side by side with Gett as the clear European leader in the ride hailing market. The new strategic partnership marks the point where the Volkswagen Group starts taking an active part in shaping the future of mobility. This is not just about linking up individual services, but about creating an integrated mobility ecosystem centered on people and the environment," said Harms.
The Volkswagen Group plans to offer attractive terms on Volkswagen automobiles for Gett drivers. Special package offers will conveniently pool various costs such as purchase or finance as well as the necessary insurance and servicing. Alongside brands such as Volkswagen, ŠKODA and SEAT, a special chauffeur service featuring premium brands, such as Audi and Porsche, is also being considered.
As key milestones in their future expansion, the two companies announced Gett's market launch in Germany and other countries across Europe. Gett services will then be on the roads of big cities in Germany such as Berlin in the first half of 2017.
For Volkswagen, the strategic partnership marks a significant initial building block in the company’s strategy to address the future of mobility.