Amidst a challenging landscape for technology startups seeking funding, Goldman Sachs has made a significant $72 million investment into Tokyo-based ride-hailing company, Go, valuing the company at approximately $1 billion.
Go, which operates a Uber-styled ride-hailing service in Japan, commands 70% of the Japanese market, outpacing Uber and Didi which also have operations in the country.
The company says it will use the funds to enhance its app and develop new businesses within the mobility industry, aiming to address various societal issues. Additionally, the funding will bankroll" aggressive acquisition forays and an initial public offering in the near future", according to Go's President Hiroshi Nakajima.
While continuing its ride-hailing operations, Go is also diversifying its presence within the mobility sector through its camera and software solutions. These solutions are aimed at monitoring drivers and ensuring safe driving practices. It is also streamlining some of its less profitable segments to optimize its operations. Recently, the company made the decision to close its food delivery business as customers gradually return to dining out following the impact of the pandemic.
Goldman Sachs' investment demonstrates renewed confidence in the ride-hailing sector after it divested its entire stake in sister ride-hailing company Uber in 2020.