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Adam Neumann invests in vehicle sharing provider GoTo Global

Credit: REUTERS/EDUARDO MUNOZ

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

TEL AVIV, July 15 (Reuters) - WeWork co-founder Adam Neumann has invested $10 million in GoTo Global as part of a $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 SHGR.TA, at $30 million and Neumann will hold a 33% 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 $13.2 million and provided more than 1.3 million trips.

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

In May Neumann filed a lawsuit against Japan’s SoftBank Group and its Vision Fund for terminating a $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 Neumann last year and has seen occupancy rates plummet amid the coronavirus pandemic.

(Reporting by Tova Cohen Editing by Steven Scheer)

((tova.cohen@thomsonreuters.com; +972-9-899-0222; Reuters Messaging: tova.cohen.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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