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Getaround, a company that helps the vehicle owners to free their cars, trucks and off -road vehicles to their other counterparts, closes US operations for one year after reducing 30% of the North American workforce as part of restructuring. Hyrecar’s business, which he bought for $ 9.45 million in 2023, also closes.
The company said on Wednesday regulatory notification In addition to being sent to US clients in E -Mail, he focuses on his European business, where it operates in six countries, including Norway, Spain, France, Germany, Belgium and Austria.
The E -Mail, which the techcrunch viewed, urged customers to return to car rental by the end of Wednesday to avoid cover deficiencies and claim that “there is a risk that they are no longer able to undertake liability insurance in the United States”
“If not, it is personally responsible for providing the necessary liability insurance,” read E -Mail. Getaround said that its car protection program no longer applies to any vehicle that is not returned by the end of the day, ie customers are responsible for the damage.
The Getaround, founded in 2009 in San Francisco, and was the finalist of the techcrunch starting battlefield in 2011, was the story of a roller coaster.
The company was a venture capital, raising more than $ 750 million from senior investors, including $ 300 million in a 2018 round, led by Softbank Vision Fund. Other Getaround investors included Menlo Ventures, PeopleFund, Reid Hoffman and Mark Pincus re -capital, as well as Vectoiq partners, Steve Girsky, Mary Chan and Julia Steyn – mentioning some.
Getaround used this money to extend to other cities and finally to Europe, with Drivy and Norweigan car rental Nabobile $ 300 million, both in 2019.
The company was released in 2022 through the merger of a specialized acquisition company, but soon became in trouble. Within months of the launch of the public, he was notified to a warning warning from the New York Stock Exchange. He underwent layoffs in 2023 and 2024.
“The tidy is closed”
On February 7, the Board of Directors approved the “orderly completion” of the United States’ car sharing business, which includes the release of all US employees, according to a regulatory announcement published on Wednesday. Most of these employees will end employment on February 14, some remaining to help close the business.
Getaround estimates that it will charge between $ 1.5 and $ 2 million on power reduction.
This organized break may seem chaotic for any customer who existed or had a planned Getaround rental fee. In E -Mail to customers, Getaround said it would support rental fees (including insurance coverage) by the end of Wednesday, so customers have little time to return to vehicles. The company has resigned all future US rent.
“We work closely with the hosts and drivers to return the vehicles as soon as possible,” reads E -Mail. “Any outstanding demand or balance is treated through the liquidation process.”
Temporary CEO and Coo Aj Lee, who resigns from the position, said in a statement that “it was an incredibly difficult decision that was not made easily and only after careful consideration of the various strategic opportunities.”
Lee added that “despite the significant improvement of general profitability and extensive restructuring efforts, the company was a lack of continuous liquidity, which made American operations no longer viable”.
