Israeli startup Gett said it struck a partnership with Lyft to expand its US footprint and is shuttering its New York ride-sharing business Juno, the latest sign of consolidation in an industry facing mounting regulation from state and local governments.
Venture-capital-backed Gett acquired Juno in 2017 in a $200 million equity-based deal. Gett blamed Juno’s demise on “misguided regulations in New York City earlier this year.”
Gett said it plans to increase its focus on corporate transportation services through its partnership with Lyft, which follows another partnership agreement it signed in 2017 with Frederick, Md.-based Carey International Inc.
“Instead of competing with consumer ride-sharing companies, we are partnering with them,” Gett Chief Executive Dave Waiser said in a statement.
Lyft, Uber Technologies Inc. and other ride-hailing companies are grappling with efforts by several states to extend employment protections to gig workers, measures that could upend their business models. A bill in California recently reclassified some independent contractors, including drivers, as employees, while a coalition of unions is pushing for similar legislation in New York.
