WeWork co-founder Adam Neumann invests in vehicle sharing firm GoTo Global

[TEL AVIV] WeWork co-founder Adam Neumann has invested US$10 million in GoTo Global as part of a US$19 million funding round for the vehicle sharing service provider that operates in Israel and Malta.

The fundraising values GoTo Global, a subsidiary of Israel's Shagrir Group Vehicle Services, at US$30 million and Mr Neumann will hold a 33 per cent stake, the company said on Wednesday.

GoTo Global, which plans to expand in Europe this year, provides shared vehicles including cars, mopeds, bicycles and scooters. In 2019 it had revenue of US$13.2 million and provided more than 1.3 million trips.

GoTo Global chief executive officer Gil Laser said the alternative transportation market is expected to exceed US$600 billion by 2025. The coronavirus pandemic increases the potential for the company's market as people avoid public transportation, he said.

In May Mr Neumann filed a lawsuit against Japan's SoftBank Group and its Vision Fund for terminating a US$3 billion tender offer to WeWork's shareholders.

The office-sharing startup has gone through a tumultuous period since abandoning its initial public offering in September. It pushed out Mr Neumann last year and has seen occupancy rates plummet amid the coronavirus pandemic.

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REUTERS