Getarrand, a company that helps owners of vehicles to rent their cars, trucks and seen from other peers, closes its American operations a year after having reduced 30% of its North American workforce as part of a restructuring. Her Hyrecar company, which she acquired in 2023 for $ 9.45 million, also closed.
The company said in a Wednesday regulatory deposit In addition to an email sent to American customers, he now focuses on her European activities where she operates in six countries, notably Norway, Spain, France, Germany, Belgium and Austria.
The email, which Techcrunch consulted, urged customers to return car rental by the end of Wednesday to avoid the gaps in the coverage and said that it was “in danger of no longer being able to provide Civil liability insurance coverage in the United States “
“If you don’t, you may be personally responsible for ensuring that it has the required civil liability insurance coverage,” said the email. Getarrand said that his car protection program would no longer apply to any unpaid vehicle by the end of the day, which means that customers are responsible for damage.
Getaround, who was founded in 2009 in San Francisco and was a finalist in the battlefield of Startup Techcrunch in 2011, experienced a history of roller coaster.
The company was a venture capital favorite, collecting more than $ 750 million from high-level investors, including $ 300 million in a round led by SoftBank Vision Fund. Other strike investors have included Menlo Ventures, Peoplefund, Reid Hoffman and Mark Pincus’s Reinven Capital and Vectoiq Partners Steve Girsky, Mary Chan and Julia Steyn – to name only a few.
Getarrand used this money to develop in other cities and possibly Europe with its acquisition of $ 300 million from the Drivy and Norweigan, Nabobil car rental company, both in 2019.
The company became public in 2022 via a merger with an acquisition company for special purposes, but quickly was in trouble. A few months following the fact of becoming a public, he received a warning notice from the New York Stock Exchange. He also underwent layoffs in 2023 and 2024.
‘Ordered of deadlines’
The Board of Directors approved on February 7 an “orderly distress” of the Self-Party company in the United States, which includes the link of all US employees, according to its regulatory file displayed on Wednesday. The majority of these workers will end their employment on February 14 with a few to help close the business.
Getarnd estimates that he will hear $ 1.5 million fees to $ 2 million in connection with the reduction in force.
This ordered discharge may seem chaotic to all customers who had existing or planned strike rentals. In an email to customers, Getarnd said that he would support the rentals (including insurance coverage) until the end of Wednesday, which leaves customers shortly to return the vehicles. The company also canceled the future American rentals.
“We are working in close collaboration with hosts and drivers to return the vehicles as soon as possible,” said the email. “All pending complaints or counterweights will be treated by the end process.”
The CEO and head of acting operations AJ Lee, who will withdraw from the post, said in a statement that it was “an incredibly difficult decision, which was not taken lightly and only after a careful examination various strategic options “.
Lee added that “despite significant improvements in global profitability and significant restructuring efforts, the company was faced with a lack of continuous liquidity which made American operations more viable.”
