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Volkswagen launches new mobility services division

Volkswagen launched a new digital business division at TechCrunch Disrupt London 2016 on Monday to take on services such as Uber, shifting its focus beyond selling cars to catering for customers who prefer to pay for use rather than own a vehicle.
Volkswagen launches new mobility services division

VW will offer on-demand shuttle services next year through the new division, to be called MOIA. That takes Europe’s largest carmaker deeper into digital mobility services after investing in ride-hailing business Gett earlier this year, Joinfo.com reports with reference to Firstpost.

“Mid and long-term MOIA will create the kinds of services that will meet the needs of urban citizens,” Ole Harms, head of the new division said on Monday. VW, seeking to recover from its diesel emissions scandal, expects to earn a substantial share of revenues by 2025 from the new services business as it revamps its core brand while investing billions of euros in electric vehicles, ride-hailing and self-driving cars.

The German company wants to become a leader in the new services in Europe over the next 1-2 years, Harms told reporters late on Sunday, adding that Berlin-based MOIA’s workforce will quadruple to 200 staff next year.

“We want to bring our services to the market at scale,” Harms said, citing Europe, the United States, China as key markets. But rivals including Toyota and General Motors have also taken stakes in mobility companies as carmakers and technology firms such as Google and Apple vie to serve consumers in the vast digital market.