Getaround, a company that allows vehicle owners to rent out their cars, trucks, and SUVs to others, is shutting down its U.S. operations just one year after reducing its North American workforce by 30% as part of a restructuring effort. Its HyreCar business, acquired in 2023 for $9.45 million, will also be closing.
According to a regulatory filing on Wednesday and an email sent to U.S. customers, Getaround is now shifting its focus to its European business, which operates in six countries: Norway, Spain, France, Germany, Belgium, and Austria.
In an email obtained by TechCrunch, the company urged customers to return their rented vehicles by the end of Wednesday to avoid potential coverage gaps. Getaround warned that it is “at risk of no longer being able to provide liability insurance coverage in the U.S.” and advised that customers who fail to return vehicles may be personally responsible for ensuring they have the required insurance coverage. The company’s car protection program will no longer apply to any vehicle not returned by the deadline, making renters liable for any damages.
Founded in 2009 in San Francisco, Getaround was a finalist in the 2011 TechCrunch Startup Battlefield competition and was once considered a promising startup.
The company attracted more than $750 million in venture capital, including a $300 million investment from SoftBank Vision Fund in 2018. Other notable investors included Menlo Ventures, PeopleFund, Reid Hoffman, Mark Pincus’ Reinvent Capital, and VectoIQ partners Steve Girsky, Mary Chan, and Julia Steyn.
With this funding, Getaround expanded into multiple cities and later into Europe, acquiring Drivy and Norwegian car rental company Nabobil in 2019 for a combined $300 million. The company went public in 2022 via a merger with a special purpose acquisition company (SPAC) but quickly faced financial troubles. Within months of its public debut, Getaround received a delisting warning from the New York Stock Exchange and went through rounds of layoffs in 2023 and 2024.
“Orderly Wind Down”
On February 7, Getaround’s board approved an “orderly wind down” of its U.S. car-sharing business, including laying off all of its U.S. employees, according to a regulatory filing. The majority of those employees will lose their jobs by February 14, with a small team remaining temporarily to assist in closing operations.
The company estimates it will incur costs of $1.5 million to $2 million related to the workforce reduction.
For customers with ongoing or planned rentals, this closure may seem abrupt. Getaround stated in its email that it would continue supporting rentals, including insurance coverage, until the end of Wednesday, leaving renters with limited time to return vehicles. Additionally, the company has canceled all future U.S. rentals.
“We are working closely with hosts and drivers to return vehicles as soon as possible,” the email stated. “Any outstanding claims or balances will be handled through the wind-down process.”
Interim CEO and COO AJ Lee, who is stepping down from his position, described the closure as an “incredibly difficult decision” made only after careful evaluation of strategic options.
Lee added that, despite significant improvements in profitability and restructuring efforts, Getaround’s lack of liquidity ultimately made its U.S. operations unsustainable.