Getaround, a peer-to-peer car-sharing platform, has announced the closure of its US operations. This decision follows a 30% workforce reduction in 2023 as part of a restructuring plan. The company’s HyreCar business, acquired in 2023, will also shut down.
Getaround cited a focus on its European operations, where it operates in six countries. The company has instructed US customers to return rental vehicles by Wednesday’s end to avoid insurance coverage gaps. Getaround’s car protection program will cease for vehicles not returned by the deadline, leaving customers liable for damages.
Getaround, founded in 2009, raised significant funding from investors, including Softbank Vision Fund. In 2022, it went public through a merger with a special purpose acquisition company but faced challenges afterward. It received a delisting warning from the New York Stock Exchange and went through layoffs in 2023 and 2024.
In accordance with a February 7 board approval, Getaround will initiate an “orderly wind down” of its US operations, including layoffs of all US employees. Most employees will end their employment on February 14th, with a few remaining to assist in closing the business. Getaround estimates $1.5 million to $2 million in charges related to the workforce reduction.
Interim CEO and COO AJ Lee stated that the decision to close US operations was difficult but necessary due to ongoing liquidity challenges and the non-viability of the operations. The company will continue to support existing rentals with insurance coverage until Wednesday’s end, canceling all future US rentals. Outstanding claims and balances will be handled during the wind-down process.
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