Getaround

Last updated
Getaround
OTC Pink  Current: GETR
Industry Carsharing
FoundedSeptember 9, 2009;14 years ago (2009-09-09)
San Francisco, California, U.S.
FoundersSam Zaid
Jessica Scorpio
Elliot Kroo
HeadquartersSan Francisco, California, U.S.
Area served
Urban areas of Boston, Chicago, San Francisco Bay Area, New Jersey, Portland, Seattle, Philadelphia, Miami, Atlanta, San Diego, Los Angeles, Denver, and Washington, D.C. Globally, Getaround is in France, Germany, Spain, Austria, Belgium, the U.K., Norway, and the Netherlands.
Services Carsharing
Number of employees
550 [1]
Website getaround.com

Getaround is an online car sharing or peer-to-peer carsharing service that connects drivers who need to reserve cars with car owners who share their cars in exchange for payment.

Contents

Getaround launched to the public on May 24, 2011, at the TechCrunch Disrupt conference. The company operates in Boston, Chicago, San Francisco Bay Area, New Jersey, Portland, Seattle, Philadelphia, Miami, Orlando, Atlanta, San Diego, Los Angeles, Denver, and Washington D.C. [2]

History

Getaround was founded in 2009 by Sam Zaid, Jessica Scorpio, and Elliot Kroo. In May 2011, Getaround won the TechCrunch Disrupt New York competition. [3] In 2012, Getaround began serving Portland, Oregon with the aid of a $1.725 million grant from the Federal Highway Administration. [4]

In November 2016, Getaround reached an agreement with City CarShare to take over its fleet, parking spaces and member base. [5]

In August 2018, Getaround raised $300 million in fundings from Softbank. [6]

In April 2019, Getaround absorbed the carsharing platform Drivy for $300 million [7] [8] and rebranded as Getaround six months later. [9]

In May 2022, Getaround announced an agreement to merge with a Special Purpose Acquisition Company (SPAC) to start selling shares of the organization on the New York Stock Exchange. Listed as ‘GETR’, the company would have a equity value of $1.2 billion. [10]

Financial difficulties

In January 2020, The Information reported the company planned to lay off approximately 150 staff members or about 25 percent of its workforce. [11] Bloomberg reported in March 2020 that demand had dropped due to the COVID-19 pandemic, and that the company was short on cash and looking for a buyer. [12]

Getaround’s 2022 SPAC merger valued the company at $1.2 billion, but the company's stock soon fell, and by 2024 the company's market cap was roughly $24 million. In February 2024, Getaround laid off 30 percent of its staff, this after the company vacated its San Francisco headquarters in 2023. [13] In July 2024, the company's stock was delisted from the NYSE and transferred to the OTC Markets. [14]

Criminal use

Criminals have used Getaround, along with other peer-to-peer car rental services such as Turo, for illegal activities. In February 2020, the Washington Post reported that thieves were finding available cars using the Getaround mobile app, which displayed the exact locations of vehicles for rent. Victims have reported that thieves could break into a car, destroy the Getaround Connect device that is intended to immobilize the car and report its position, and take the keys that had been locked inside the vehicle. [15] Of the 787 cars stolen in the District of Columbia between October 1, 2019, and February 4, 2020, the Metropolitan Police Department of the District of Columbia estimated that 49 of the thefts involved car rental apps such as Getaround. [16] In July 2021, the Attorney General for the District of Columbia announced a settlement with Getaround that required Getaround to pay the district $950,000, to pay restitution to users whose vehicles had been damaged or stolen, and to make other changes to its platform. [17]

In February 2020, NBC News interviewed eight Getaround users whose cars had been stolen, damaged, seized by police as evidence, or otherwise misused. Many of the owners were not fully compensated by Getaround's insurance for their losses. A former Getaround employee told NBC News that the company has known since 2017 that its GPS tracking devices were not tamper-proof. [18]

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References

  1. ↑ "Getaround". www.getaround.com. Retrieved 2017-11-08.
  2. ↑ "Getaround Expands To Boston", Newswire, May 10, 2017.
  3. ↑ DesMarais, Christina."Getaround Named 2011 TechCrunch Disrupt Winner" Archived 2011-11-11 at the Wayback Machine , Technology Inc., May 26, 2011.
  4. ↑ Tomio Geron (13 December 2011). "Getaround Brings Car-Sharing To Oregon With Federal Grant". Forbes.com. Retrieved 6 March 2019.
  5. ↑ Carolyn Said (10 November 2016). "City CarShare hands over on-demand auto rentals to Getaround". Sfchronicle.com. Retrieved 6 March 2019.
  6. ↑ "Car-sharing startup Getaround raises $300 million in funding led by SoftBank". Reuters.com. 21 August 2018. Retrieved 6 March 2019.
  7. ↑ "Übernahme von Drivy: Carsharing-Riese Getaround drängt nach Europa" (in German). Retrieved 2019-04-24.
  8. ↑ Dickey, Megan Rose. "Getaround acquires European car rental platform Drivy for $300 million". TechCrunch. Retrieved 2019-04-30.
  9. ↑ Dillet, Romain (2019-01-17). "Drivy rebrands to Getaround six months after acquisition". TechCrunch . Retrieved 2019-10-17.
  10. ↑ "Car-Sharing Startup Getaround Agrees to $1.2 Billion SPAC Merger". Bloomberg. 11 May 2022. Retrieved 17 May 2022.
  11. ↑ Weinberg, Cory (2020-01-07). "Getaround to Lay Off About One-Fourth of Staff". The Information (company) . Retrieved 2020-01-08.
  12. ↑ SoftBank-Backed Getaround Looks for a Buyer as Demand Evaporates
  13. ↑ Council, Stephen (February 9, 2024) "Car rental company Getaround lays off 30% of staff after ditching SF headquarters." SF Gate. (Retrieved February 14, 2024.)
  14. ↑ "Getaround Announces NYSE's Suspension of Trading and Start of Delisting Process" (Press release). Business Wire. July 10, 2024.
  15. ↑ Lazo, Luz (February 14, 2020). "Thieves are using peer-to-peer car rental apps to find their next ride". Washington Post. Retrieved June 8, 2022.
  16. ↑ Barthel, Margaret (February 4, 2020). "Thieves Could Be Using A Carsharing App To Steal Cars, Says D.C. Attorney General's Office". WAMU. Retrieved June 8, 2022.
  17. ↑ Alamalhodaei, Aria (July 23, 2021). "Peer-to-peer car rental startup Getaround fined nearly $1M by DC's attorney general". TechCrunch. Retrieved June 8, 2022.
  18. ↑ Ingram, David (February 10, 2020). "Wrecked cars, homicide and bags of meth: Inside the wild ride of peer-to-peer car rentals". NBC News. Retrieved June 8, 2022.
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