Getaround, a company that helps vehicle owners rent out their cars, trucks and SUVs to other peers, is shutting down its U.S. operations one year after cutting 30% of its North American workforce as part of a restructuring. Its HyreCar business, which it acquired in 2023 for $9.45 million, is also closing.
The company said in a Wednesday regulatory filing as well as in an email sent to U.S. customers it is now focused on its European business where it operates in six countries, including Norway, Spain, France, Germany, Belgium, and Austria.
The email, which TechCrunch has viewed, urged customers to return car rentals by the end of Wednesday to avoid any coverage gaps and said it is “at risk of no longer being able to provide liability insurance coverage in the U.S.”
“If you don’t, you may be personally responsible for ensuring it has the required liability insurance coverage,” the email reads. Getaround said its car protection program will no longer apply to any vehicle not returned by the end of the day, meaning customers would be responsible for any damages.
Getaround, which was founded in 2009 in San Francisco and was a TechCrunch Startup Battlefield finalist in 2011, has had a roller coaster history.
The company was a VC darling, raising more than $750 million from high-profile investors, including $300 million in a round led by Softbank Vision Fund. Other Getaround investors have included Menlo Ventures, PeopleFund, Reid Hoffman and Mark Pincus’ Reinvent Capital, and VectoIQ partners Steve Girsky, Mary Chan and Julia Steyn — to name a few.
Getaround used that money to expand into other cities and eventually Europe with its $300 million acquisition of Drivy and Norweigan car rental company Nabobil, both in 2019.
The company went public in 2022 via a merger with a special purpose acquisition company, but soon ran into trouble. Within months of going public it received a delisting warning notice from the New York Stock Exchange. It also went through layoffs in 2023 and 2024.
‘Orderly wind down’
The board approved February 7 an “orderly wind down” of the car-sharing business in United States which includes laying off all U.S. employees, according to its regulatory filing posted Wednesday. The majority of those workers will end their employment February 14 with a few remaining to help close the business.
Getaround estimates that it will incur charges of between $1.5 million to $2 million in connection with the reduction-in-force.
This orderly wind down may seem chaotic to any customers who had 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 customers with little time to return vehicles. The company has also canceled any future U.S. rentals.
“We are working closely with hosts and drivers to return vehicles as soon as possible,” the email reads. “Any outstanding claims or balances will be handled through the wind-down process.”
Interim CEO and COO AJ Lee, who will be stepping down from the position, said in a statement that it has “been an incredibly difficult decision, one that was not made lightly and only after careful consideration of various strategic options.”
Lee added that “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.”
