GetAround suddenly shuts down US car sharing operations
GetAround, a company that helps vehicle owners rent cars, trucks and SUVs to other team members, is shutting down US operations a year after cutting 30% of North American workforce . Part of the restructuring. Hyrecar Business acquired in 2023 $9.45 millionIt’s also closed.
The company said Wednesday Regulation submission As well as emails sent to US customers, it focuses on European businesses currently operating in six countries, including Norway, Spain, France, Germany, Belgium and Austria.
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, raising over $750 million from well-known investors. 300 million dollars In a round led by the 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 the money to expand to other cities and eventually to Europe. 300 million Drybee acquisition and Norway Gun Car Rental Company Nabovilleboth in 2019.
company Published in 2022 However, we soon encountered trouble due to a merger with a special purpose acquisition company. I received it within a few months of publication Registration warning notification From the New York Stock Exchange. I also passed the layoff 2023 and 2024.
“Ordinary winding”
The board of directors added a “orderly decline” of U.S. auto-sharing business on February 7th, according to a regulatory filing posted Wednesday. Most of these workers ended their employment on February 14th, with some remaining to close their businesses.
GetAround estimates that between $1.5 million and $2 million will be billed in connection with the reduction in the force.
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.”