Getaround Ceases U.S. Car-Sharing Operations: What This Means for the Future of Ridesharing

Getaround, a prominent player in the car-sharing industry, is ceasing its U.S. operations just a year after implementing significant layoffs across its North American workforce. This decision comes on the heels of the company’s acquisition of HyreCar for $9.45 million in 2023, which is also shutting down. As Getaround shifts its focus toward European markets, this article explores the reasons behind this strategic move and its implications for customers.

Getaround’s Shift to European Operations

In a regulatory filing and an email directed at U.S. customers, Getaround announced that it will concentrate on its business in Europe, currently operating in six countries: Norway, Spain, France, Germany, Belgium, and Austria. This transition marks a significant change in the company’s operational strategy.

Important Customer Information

In the email, which was reviewed by TechCrunch, Getaround instructed customers to return their rented vehicles by the end of Wednesday to prevent coverage lapses. Here are the key takeaways:

• The company is “at risk of no longer being able to provide liability insurance coverage in the U.S.”
• Failure to return vehicles on time may result in personal liability for insurance coverage.
• Getaround’s car protection program will not cover any vehicles not returned by the deadline.

A Brief History of Getaround

Founded in 2009 in San Francisco, Getaround gained recognition as a TechCrunch Startup Battlefield finalist in 2011. The company quickly became a favorite among venture capitalists, raising over $750 million from notable investors, including:

• Softbank Vision Fund
• Menlo Ventures
• Reid Hoffman
• Mark Pincus’ Reinvent Capital
• VectoIQ partners

With this funding, Getaround expanded into various cities and made significant acquisitions, including Drivy and Norwegian car rental company Nabobil in 2019.

Challenges Following Public Listing

In 2022, Getaround went public through a merger with a special purpose acquisition company (SPAC). However, shortly after the listing, the company faced challenges, including a delisting warning from the New York Stock Exchange and subsequent layoffs in 2023 and 2024.

Details of the Orderly Wind Down

The board approved an “orderly wind down” of U.S. operations on February 7, which involves:

• Laying off all U.S. employees, with most ending employment by February 14.
• Expected charges ranging from $1.5 million to $2 million related to the workforce reduction.

This transition may come as a surprise to customers with ongoing or future rentals, as Getaround has canceled any upcoming U.S. rentals. The company has committed to supporting existing rentals until the designated deadline.

CEO’s Statement on the Decision

Interim CEO and COO AJ Lee expressed the difficulty of this decision, emphasizing that it was not made lightly. Despite efforts to enhance profitability and extensive restructuring, the company struggled with liquidity issues that rendered U.S. operations unsustainable.

For further updates on Getaround’s operations and related news, visit Getaround’s official website.