Uber’s Israeli Rival GetTaxi Raises $150 Million to Expand

Aug 13, 2014 5:27 am ET

(Updates with GetTaxi statement in second paragraph.)

Aug. 13 (Bloomberg) -- GetTaxi Inc., the ride-hailing application that competes with Hailo Network Ltd. and Uber Technologies Inc., raised $150 million in new funding that will let it start a service in New York for corporate customers.

The closely held company will also build out its black-cab business in London and continue expanding in major European cities, Tel Aviv-based GetTaxi said today in a statement. That brings the total GetTaxi has raised to more than $210 million.

Investors are pouring cash into the burgeoning market for apps that let users order taxis and cars or share rides using their smartphones. Uber, which is in more than 40 countries, raised $1.2 billion in funding in June, giving it a value of $17 billion. Lyft Inc. raised $250 million from investors including Alibaba Group Holding Ltd. in April.

“Although competition is ripe everywhere, we think a conservative scenario is that GetTaxi becomes the leading player in Russia and Israel,” Vostok Nafta Investment Ltd., the Swedish fund manager that contributed $25 million to the funding round, said in a separate statement. That would give GetTaxi a potential valuation of more than $2 billion in “a couple of years,” it said.

GetTaxi had previously raised cash from billionaire Len Blavatnik’s Access Industries and venture-capital firm Kreos Capital.

More than 1,500 businesses use GetTaxi for corporate travel and the company operates in 24 cities including London, Moscow and Tel Aviv, according to its website. GetTaxi, which operates under the Gett brand in the U.S., will reach a run rate of $150 million in annual sales by the end of the year, according to Vostok Nafta.

--With assistance from Ilya Khrennikov in Moscow.