Getaround’s official email on US shutdown
Last night, Getaround sent an email announcing it is shutting down its US operations, which includes HyreCar , citing the need to preserve liquidity and maximize stakeholder value through its European business.
Ongoing US rentals ending by 2/13/25 will be supported, but new rentals after 2/11/25 are canceled. Getaround said it will assist with vehicle returns and provide instructions for device removal.
Years ago, Getaround’s liability insurance was provided by Assurant in many states, excluding NY. However, the company has now stated that liability coverage will end on 2/13/25, and renters must ensure they have sufficient coverage. Cars not returned by then will not be protected under Getaround’s car protection program, making renters liable for damages.
More recently, Roamly , the insurance arm of RV rental company Outdoorsy, announced it offers carshare insurance for individuals and fleet owners using rental platforms. “The first integration of Roamly Carshare is currently live on Getaround, the world’s first connected car-sharing marketplace and its wholly-owned subsidiary for gig carsharing, HyreCar, where the product extends protection to their Power User communities,” according to the press release. Roamly partnered with Mobilitas Insurance for this commercial offering, which is not available in KY, NY, and MA.
The assets of HyreCar, a gig carsharing marketplace, were acquired by Getaround in March 2023 for $9.45 million. Previously, HyreCar used Apollo and Assurant for liability insurance and Sedgwick for claims processing.
Getaround, which has raised over $760 million in debt, equity, and post-IPO funding since its founding in 2009, went public in December 2022 through a SPAC merger with InterPrivate II Acquisition Corp. At its peak, the SoftBank-backed company was valued at over $1.2 billion.
Getaround concluded the email by reassuring European users that its operations in Europe remain funded and will continue.
“This has been an incredibly difficult decision, one that was not made lightly and only after careful consideration of various strategic options. Despite significant improvements in overall profitability and extensive restructuring efforts, the Company has faced an ongoing lack of liquidity which has made US operations no longer viable. We are deeply grateful to our dedicated Getarounders and loyal hosts and guests in the US for their unwavering support and commitment to Getaround and HyreCar over the years. Their contributions have been invaluable, and the company truly appreciates all that they have done.” – AJ Lee, Interim CEO and COO.
Bottom Line: The US operations shutdown comes after restructuring, layoffs, and an unsuccessful change in management.
CEO Eduardo Iniguez joined Getaround in 2024 but was unable to turn the company around, leaving after a year.
As of 2023, Getaround had 75,000 active cars. “Since inception, which is 2009, we’ve had hosts make about $540 million, and we have about 1,000 active cities in 8 countries. And to the right, you have the guests. We have about 2.1 million guests per year and about 8 million trips completed. So the market, it’s there, and it’s still small according to our analysis,” Iniguez said during a May 16, 2024 call.
This came after the company cut 30% of its workforce, citing overhiring in Feb 2024.
In its last reported earnings, Getaround posted an $11.4 million loss and confirmed its exit from New York, one of its largest markets, due to high regulatory costs.
