Getaround announces restructuring plan
Carsharing marketplace Getaround announced plans to streamline operations and reduce costs in order to achieve a leaner path to profitability. These changes also include a workforce reduction, effective immediately, that impacts approximately 10% of the company’s current staff. The restructuring plan also includes significant reductions to other operating expenses, including reducing the company’s contract workforce, and outside professional services.
This revised global business strategy is intended to fortify the company’s path to achieve sustainable profitability and long-term growth. Together, these reductions are estimated to result in cost savings of $25-$30 million on an annualized run-rate basis.
Founded in 2009 and launched in 2011, Getaround went public via a SPAC merger last year and it has seen its share price decline by 93%. In 2021, Getaround recorded gross booking value of $167 million, and $81 million of net marketplace revenue. The company is not profitable and loss from operations stood at ~$100 million in 2021.
The company has a partnership with Assurant, which provides liability insurance.
“In response to an uncertain near-term macroeconomic outlook, which has hit technology companies particularly hard, Getaround has made the decision to streamline its operations. These proactive changes include a difficult, but necessary, reduction in our North American workforce. Through these changes, we will maintain and prioritize Getaround’s spirit of innovation and long-term focus on profitably growing our global marketplace at a measured and efficient pace, while, at the same time, optimize the Company’s underlying cost structure. Getaround continues to benefit from strong demand in the U.S. and Europe, as we continue to lead the digital carsharing transformation. While this was a necessary step to maintain financial health and the long-term success of Getaround, with much sadness, I want to say thank you to our departing colleagues for your contributions, the energy you have brought to the team, and the impact you have had building Getaround into a global marketplace.” – Sam Zaid, Getaround CEO.