GetAround, a company that helps vehicle owners rent cars, trucks and SUVs to others, will be releasing US operations a year after cutting 30% of North American workforce as part of a restructuring. It’s closed. The Hyrecar business, which was acquired in 2023 for $9.45 million, has also been closed.
The company focused on its European operations operating in six countries including Norway, Spain, France, Germany, Belgium and Austria in regulatory submissions on Wednesday and emails sent to US customers. He said he was in the position.
An email seen by TechCrunch urged customers to return their car rentals by the end of Wednesday, avoiding coverage gaps and saying “there is a risk that the US will no longer be able to provide liability insurance coverage.”
“If not, you may be personally liable to ensure that it requires liability insurance coverage,” the email reads. Getaround says its automotive protection program will no longer apply to vehicles that are not returned by the end of the day. This means that the customer is liable for damages.
Founded in San Francisco in 2009 and a TechCrunch startup battlefield finalist in 2011, Getaround had a roller coaster history.
The company is a VC darling and has raised more than $750 million from high-profile investors, including $300 million in the 2018 round led by SoftBank Vision Fund. Other GetAround investors include Menlo Ventures, PeopleFund, Reid Hoffman, Renvent Capital from Mark Pincus, Steve Girsky, Mary Chan and Julia Steyn from Vectoiq Partners.
GetAround used that money to expand to other cities, and ultimately expanded in 2019 with the $300 million acquisition of Drivy and Norweigan’s car rental company Nabobil.
The company was made public in 2022 through a merger with a special purpose acquisition company, but soon came into trouble. Within months of its release, I received a delisting warning notification from the New York Stock Exchange. They also passed layoffs in 2023 and 2024.
“Ordinary winding”
The board approved the “orderly decline” of the U.S. auto-sharing business on February 7, according to a regulatory filing posted Wednesday. Most of these workers ended their employment on February 14th, with some remaining to help shut down the business.
GetAround estimates that between $1.5 million and $2 million will be billed in connection with reduced power.
This orderly unwind may appear confusing to customers with existing or planned getaround rentals. In an email to customers, Getaround said it would support rentals (including insurance coverage) until the end of Wednesday, leaving little time for customers to return the vehicle. The company has also cancelled future US rentals.
“We work closely with our hosts and drivers to return the vehicle as soon as possible,” the email reads. “An outstanding bill or balance will be processed through a wind-blown process.”
Interim CEO and COO AJ Lee are set to step down from the position, saying in a statement that it was “a very difficult decision and was only lightly made after careful consideration of various strategic options.”
“Despite a significant improvement in overall profitability and large-scale restructuring efforts, the company faces a continuing lack of liquidity, making it no longer viable,” Lee said. Masu.”
Source link
