Online car-sharing platform Turo has indefinitely postponed its plans for an initial public offering (IPO). This decision follows a three-year anticipation for the company to enter the public market.
Turo, founded in 2010, enables individuals to rent out their vehicles through its website and app. Often compared to Airbnb for cars, the company had filed for an IPO in January 2022. However, unfavorable market conditions and a deceleration in growth prompted a change in plans.
The announcement of Turo’s IPO withdrawal coincides with the recent closure of Getaround’s U.S. operations, another peer-to-peer car-sharing company. While both Turo and Getaround initially relied on venture capital, Getaround went public in 2022 through a merger with a special purpose acquisition company.
Despite the IPO setback, Turo continues to operate in the U.S. and other countries. As of September 2024, the company reported a global presence with 150,000 active hosts, 350,000 vehicle listings, and 3.5 million active guests. Its operations extend to Canada, Australia, and France.
Turo’s growth has recently plateaued. In the nine months ending September 2024, the company reported revenue of $722 million, a modest 8.6% increase over the same period in 2023. This falls short of the $879.7 million revenue generated in the comparable period of 2022. Turo has achieved profitability since 2022, but its earnings have yet to reach the highs reported in 2022.
Market conditions in 2023 adversely impacted Turo’s business, which recovered to some extent in 2024. However, the recovery has not been sufficient to justify an IPO at this time.
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