VW’s fresh business division soon to challenge services like Uber

Automotive - Mohit Shah - Dec 06,2016

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vw fresh business division soon to challenge services like uber

The German automaker, Volkswagen, has launched a new business division that would focus on the pay-for-use service, targeting companies like Uber.

On Monday, Volkswagen announced that it would be introducing a totally different business division that is not related to selling cars but is aimed at catering for customers who wish to pay for use.

This recent plan is a direct attempt to encounter services such as Uber, which already possesses a major domination in the field of shuttle services.

VW is aiming to start on-demand shuttle services from next year under a separate division called as MOIA. This is a smart attempt by the global automaker to spread its wings in digital mobility services.

The diesel emission scandal was indeed a major setback for VW which had shaken several of the company’s hopes. But after an active execution of the ride-hailing business, Gett, earlier this year and with MOIA underway, the carmaker is expecting to earn substantial amount of revenues by 2025. The huge investment in electrical vehicles is another segment which is eyed as a profitable step for the company’s prosperity.

The business forecast is quite appealing as the global market for self-driving vehicles and connected services may rise to $282 billion by 2030, as confirmed by the German automobile genius.

The Chief Executive Matthias Mueller revealed the exact motive as he said, “Even though not everyone will still own a car in future, MOIA can help make everyone a customer of our company in some way or another,"; this statement was made by him at the launch event of MOIA in London.

The German company craves to become the leader in Europe through the new services in a time span of one to two years. Moreover, the United States and China are also sighted to be the key markets for this latest plan.