According to Bloomberg News, Adam Neuman is entering the German market by acquiring Emmy, a start-up moped sharing company. The Co-founder of an Israeli mobility company, GoTo Global Mobility Ltd, is backed by WeWork, where Neuman was the former CEO.
The GoTo app allows members to book bikes, scooters, and cars. The new platform will add to the existing 3000 electric moped transportation service that Emmy operates in Munich, Hamburg, and Berlin. The company now boasts 350,000 users since it was founded in 2015.
GoTo’s business model is to target daily commuters instead of one-time users or tourists. It charges a nominal membership fee which allows it to build a customer base. CEO of GoTo, Gil Laser calls the customers the “community.” The business model is similar to the one created by Neumann at WeWork when he was the CEO there. The plan is to build the relationship and expand quickly.
According to Laser, the company’s shareholder was angry as they wanted the company to accelerate and grow. Laser believes that the acquisition of Emmy will not be the first and last merger as the app-based transportation market is ready for consolidation between similar companies.
According to Laser, Neumann, 42, had invested $10 million in GoTo in July 2020 and acquired a 33 % stake. The billionaire holdings will now get diluted to 25% in the company as Equity from GoTo will be used to buy out Emmy.
GoTo, which is based out of Tel Aviv, operates in Israel, Spain, and Malta. The company is on track to double revenue for 2022 compared to the previous year. It is projecting to surpass $116 million (100 million Euros) sales for the year 2023.
Recently, it received funding of $22.5 million and is now in the midst of another round of investment. This funding is tipped to be large and will help the company in its expansion plans.
CEO Laser said, “People understand that the right way of mobility in this world is multi-modality. GoTo can substantiate this model is working after we present the data once GoTo completes four million rides”.
