Yesterday evening, GetaroundUS Shutdown in Email to Users that it will cease its operations in the US. This also applies to HyreCar, as they stated the decision is driven by their desire to prioritize liquidity and optimize value for stakeholders in their European business segment.
US rentals set to conclude by 2/13/25 will be upheld, while any future rentals beyond 2/11/25 have been terminated. Assistance with vehicle returns and instructions for removing the device will be provided by Getaround.
Previously, Assurant was the provider of Getaround’s liability insurance in several states, with the exception of NY. However, as of 2/13/25, Getaround has announced that this coverage will cease and renters are responsible for securing adequate insurance. Any vehicles not returned by this date will no longer be included in Getaround’s car protection program, resulting in renters assuming responsibility for any damages incurred.
In recent news, Roamly, the insurance branch of RV rental service Outdoorsy, has introduced carshare coverage for both individuals and fleet operators utilizing rental platforms. According to the official statement, the initial integration of Roamly Carshare is now active on Getaround and its subsidiary HyreCar – a connected car-sharing marketplace and gig carsharing platform. This new option also provides protection for Getaround’s Power User groups. Roamly worked with Mobilitas Insurance to bring this option to market, with the exception of KY, NY, and MA where it is not yet available.
In March 2023, Getaround purchased the assets of HyreCar, a gig carsharing marketplace, for a sum of $9.45 million. Prior to this acquisition, HyreCar utilized Apollo and Assurant for liability insurance and Sedgwick for claims processing.
Since its inception in 2009, Getaround has garnered extensive financial support, accumulating more than $760 million through a combination of debt, equity, and post-IPO funding. In December 2022, the company made its debut on the stock market after merging with InterPrivate II Acquisition Corp. Thanks to backing from SoftBank, it reached a peak valuation of over $1.2 billion.
Getaround ensured European users that its operations in Europe remain fully funded and will continue, as stated in the email.
After much deliberation, a tough decision was made due to the current state of our company. Despite progress in profitability and restructuring, the US operations have become unsustainable due to continuous financial struggles. Our team extends sincere gratitude to the Getarounders, hosts, and guests who have been loyal and supportive throughout our journey. Your dedication has been invaluable and we are truly grateful for your contributions. – AJ Lee, Interim CEO and COO.
In summary, the cessation of US operations follows a period of reorganization, staff reductions, and an unsuccessful attempt at new leadership.
Although CEO Eduardo Iniguez joined Getaround in 2024, he was unable to successfully turn the company around and ultimately departed after a year.
Iniguez reported during a May 16, 2024 call that Getaround had 75,000 active cars as of 2023. Since its establishment in 2009, hosts have earned $540 million and the platform is currently present in 1,000 cities across 8 countries. Additionally, there are approximately 2.1 million guests per year and over 8 million trips completed. Despite this growth, Iniguez noted that the market remains relatively small based on their analysis.
Following overhiring in February 2024, the company made the decision to reduce its workforce by 30%.
During its most recent earnings report, Getaround reported a loss of $11.4 million and announced its decision to depart from New York, one of its main markets, citing excessive regulatory expenses.
The Getaround shutdown has left many hosts in a difficult position. If you’re a former Getaround host impacted by this news, you’re likely wondering what your next steps are. Don’t worry, you’re not alone, and there are options available to you.
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