Getaround Shuts Down US Operations, Closes HyreCar Business

Getaround, a company that facilitates vehicle rentals between peers, is ceasing its US operations, one year after cutting 30% of its North American workforce as part of a restructuring. Its HyreCar business, acquired in 2023 for $9.45 million, is also shutting down.

Focus on European Business

The company announced its decision in a regulatory filing and an email to US customers, stating that it is now focused on its European business, where it operates in six countries, including Norway, Spain, France, Germany, Belgium, and Austria.

Customer Notification

The email, viewed by TechCrunch, urged customers to return car rentals by the end of Wednesday to avoid any coverage gaps and warned that it is "at risk of no longer being able to provide liability insurance coverage in the US." If customers fail to return vehicles, they may be personally responsible for ensuring liability insurance coverage.

Company History

Getaround, founded in 2009 in San Francisco, has had a tumultuous history. The company was a VC darling, raising over $750 million from high-profile investors, including $300 million in a round led by Softbank Vision Fund. Getaround used this funding to expand into other cities and eventually Europe, acquiring Drivy and Nabobil in 2019.

Public Listing and Challenges

The company went public in 2022 via a merger with a special purpose acquisition company but soon faced challenges. It received a delisting warning notice from the New York Stock Exchange and underwent layoffs in 2023 and 2024.

Orderly Wind Down

The board approved an "orderly wind down" of the car-sharing business in the US, which includes laying off all US employees. The majority of those workers will end their employment on 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.

Impact on Customers

This orderly wind down may seem chaotic to customers who had existing or planned Getaround rentals. The company has canceled any future US rentals and will support rentals, including insurance coverage, until the end of Wednesday. Interim CEO and COO AJ Lee stated that the decision was not made lightly and was made after careful consideration of various strategic options.

Background

Getaround used the money from its investors to expand into other cities and eventually Europe. However, despite significant improvements in overall profitability and extensive restructuring efforts, the company faced an ongoing lack of liquidity, making US operations no longer viable.