One year after laying off 30% of its North American staff as part of a reorganization, Getaround, a firm that assists car owners in renting out their cars, trucks, and SUVs to other peers, is closing its U.S. operations. It is also closing its HyreCar division, which it purchased for $9.45 million in 2023.
In an email to U.S. clients and a regulatory filing on Wednesday, the company stated that it is now concentrating on its European business, which includes operations in six countries: Norway, Spain, France, Germany, Belgium, and Austria.
The email’s statement is
“If you don’t, you may be personally responsible for ensuring it has the required liability insurance coverage,”.
Getaround stated that if a vehicle is not returned by the end of the day, its auto insurance policy would no longer be in effect, and consumers would be liable for any damages.
Founded in San Francisco in 2009, Getaround has had a turbulent past. In 2011, it made it to the finals of the TechCrunch Startup Battlefield.
With almost $750 million raised from well-known investors, including $300 million in a 2018 round led by Softbank Vision Fund, the company was a VC favorite. Menlo Ventures, PeopleFund, Reid Hoffman, Mark Pincus’ Reinvent Capital, and VectoIQ partners Steve Girsky, Mary Chan, and Julia Steyn are just a handful of the other investors in Getaround.
By acquiring Drivy and Norwegian vehicle rental business Nabobil for $300 million each in 2019, Getaround used that money to grow into other cities and eventually Europe.
Through a combination with a special-purpose acquisition firm, the business became public in 2022, but it quickly encountered difficulties. The New York Stock Exchange issued a delisting warning notice to it within months of its IPO. Additionally, it saw layoffs in 2023 and 2024.
