Getaround, a car-sharing company founded in San Francisco in 2009, has announced the termination of its U.S. operations, effective immediately. As part of this strategic shift, the company has canceled all future rentals in the United States and laid off its U.S. workforce. This decision follows a series of financial challenges and strategic evaluations, marking a significant change in direction for Getaround as it focuses on its European business.
The company's board approved an "orderly wind down" of its car-sharing services in the United States, leading to the cessation of its car protection program for vehicles not returned by the end of the day. Customers now bear full responsibility for any damages incurred to unreturned vehicles. The majority of Getaround's U.S. employees will see their employment terminated by February 14. This reduction-in-force is expected to cost the company between $1.5 million to $2 million.
Getaround's focus will now be its operations across six European countries: Norway, Spain, France, Germany, Belgium, and Austria. Despite being a TechCrunch Startup Battlefield finalist in 2011 and going public via a merger with a special purpose acquisition company in 2022, the company has faced financial turbulence. Within months of going public, Getaround received a delisting warning notice from the New York Stock Exchange.
A spokesperson for Getaround stated that the decision to shut down U.S. operations was "an incredibly difficult decision, one that was not made lightly and only after careful consideration of various strategic options." They also cited an "ongoing lack of liquidity" despite efforts to improve profitability and restructure extensively.
“despite significant improvements in overall profitability and extensive restructuring efforts, the Company has faced an ongoing lack of liquidity which has made U.S. operations no longer viable.”
To assist with the transition, Getaround is working closely with hosts and drivers to return vehicles promptly.
“We are working closely with hosts and drivers to return vehicles as soon as possible,”
Customers have been advised about their responsibilities, particularly concerning liability insurance coverage.
“If you don’t, you may be personally responsible for ensuring it has the required liability insurance coverage,”
Additionally, any unresolved claims or balances will be managed through the wind-down process.
“Any outstanding claims or balances will be handled through the wind-down process.”
Getaround's history has been marked by ups and downs, including layoffs in both 2023 and 2024. The company acquired HyreCar in 2023 for $9.45 million but is now closing this business as part of its strategic shift.
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