Getaround, a peer-to-peer car-sharing company that allows vehicle owners to rent out their cars, is shutting down its U.S. operations, marking the end of its presence in the American market. This decision comes just a year after the company reduced its North American workforce by 30% as part of a restructuring effort. Additionally, HyreCar, a business Getaround acquired in 2023 for $9.45 million, will also cease operations.
According to a regulatory filing on Wednesday and an email sent to U.S. customers, Getaround will now concentrate exclusively on its European business, where it operates in six countries: Norway, Spain, France, Germany, Belgium, and Austria. In the customer email, which TechCrunch reviewed, Getaround urged users to return their rental vehicles by the end of the day on Wednesday to avoid potential liability issues. The company warned that it was at risk of losing its ability to provide liability insurance in the U.S., leaving renters personally responsible for ensuring vehicles have proper coverage. Any vehicles not returned by the deadline would no longer be covered under Getaround’s car protection program, making customers liable for any damages.
Founded in 2009 in San Francisco, Getaround gained early recognition as a TechCrunch Startup Battlefield finalist in 2011. The company quickly became a favorite among venture capitalists, raising more than $750 million from major investors, including a $300 million funding round led by SoftBank Vision Fund in 2018. Other notable backers included Menlo Ventures, PeopleFund, Reid Hoffman, Mark Pincus’ Reinvent Capital, and VectoIQ partners Steve Girsky, Mary Chan, and Julia Steyn.
Leveraging its funding, Getaround expanded its operations to multiple cities and eventually entered the European market in 2019 through the $300 million acquisition of Drivy and Norwegian car rental company Nabobil.
In 2022, Getaround went public through a merger with a special purpose acquisition company (SPAC). However, financial troubles soon followed. The company received a delisting warning from the New York Stock Exchange within months of going public and underwent multiple rounds of layoffs in 2023 and 2024.
Orderly Wind-Down’ of U.S. Operations
On February 7, Getaround’s board approved an orderly wind-down of its U.S. car-sharing business, according to its regulatory filing. This process includes laying off all U.S. employees, with most departing by February 14. A small number of employees will remain temporarily to assist with the closure. The company expects to incur costs between $1.5 million and $2 million related to the workforce reduction.
For customers, the shutdown has led to confusion and urgency. In its email, Getaround confirmed that insurance coverage and rental support would be available only until the end of Wednesday, leaving renters with little time to return vehicles. The company also canceled all future U.S. bookings.
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 will step down from his role, described the shutdown as an incredibly difficult decision, one that was not made lightly and only after careful consideration of various strategic options.
Despite efforts to improve profitability and implement restructuring measures, Lee cited a persistent lack of liquidity as the primary reason why continuing U.S. operations was no longer feasible. With its exit from the U.S., Getaround is shifting its focus entirely to its European business, where it continues to operate in multiple countries.
