Shagrir to operate carsharing venture in Spain, Portugal, Italy

CAR2GO Photo: PR

The venture will go into operation in September after GoTo's system is adapted to the customer's needs.

Shagrir Group Vehicle Services Ltd. (TASE:SHGR) will operate a joint carsharing venture in Spain, Portugal, and Italy. The venture is by GoTo Mobility, a fully owned subsidiary of Car2go, of which Shagrir owns 72%. Car2go has contracted an agreement with a foreign shared car company fully owned by an auto manufacturer. Licenses will be granted to use the carsharing system developed by GoTo. 

In the first stage, the system will be installed in 200 vehicles in Madrid, followed by other locations in Spain, Portugal, and Italy.

The agreement is for 24 months and will be automatically renewed for 12-month periods unless one of the parties announces that it will not renew the agreement. The company expects activity to begin in September 2018 after GoTo completes the necessary adaptations of the system to the customer's needs.

The agreement is the first sale of the technological system developed by GoTo for shared transportation. The technology includes a system for managing shared transportation using applications, a site for making orders, a vehicle fleet management system, a business intelligence (BI) system, a customer relations management (CRM) systems, a billing system, a vehicle computer, multimedia, etc.

Car2go began its activity in Israel a decade ago. It operates in the greater Tel Aviv metropolitan area, Netanya, Haifa and its suburbs, Ashdod, and Jerusalem. The company offers short-term vehicle leasing on a model that exists in various cities around the world.

Shagrir acquired 50% of Car2go in 2009, and now owns 72% of its shares.

Shagrir, which is part of the DBSI group, also operates an auto-tel venture in Tel Aviv that offers car leasing with payment according to use in time-units of minutes. The venture has taken up hundreds of parking places all over Tel Aviv.

Published by Globes [online], Israel business news - www.globes-online.com - on June 13, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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CAR2GO Photo: PR
CAR2GO Photo: PR
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