One third of Getaround didn’t manage to get where it was going
US car-sharing company will save $7 million with restructuring
Getaround, an American peer-to-peer car-sharing service that helps vehicle owners rent out their cars, trucks and SUVs to other peers, just announced that it is firing a third of its North American staff due to restructuring. The company announced plans to reorganise its staff and operations to cut costs, aiming to increase its available funds and speed up its journey to making a profit.
Getaround didn’t reveal how many people it employs in North America or Europe, where it operates. As of December 31, 2022, the company had 283 full-time employees, as per its latest annual earnings report. Since then, the number has changed because of a 10% cut in February 2023 to streamline operations for profitability and the acquisition of Hyrecar in May 2023.
Getaround stated that this restructuring will save approximately $7 million each year. They anticipate spending up to $1 million on restructuring costs related to the workforce reductions.
Getaround CEO Sam Zaid stated that the workforce reduction was necessary due to their focus on profitability and sustainable business growth. He highlighted the progress made over the past year, including improvements in revenue growth, unit economics, adjusted EBITDA profile, and operating efficiency. Additionally, they introduced a new artificial intelligence model (Trustscore AI) to enhance marketplace safety and economics, launched a new global app for seamless trip coordination, and expanded into gig carsharing, enabling gig workers across the U.S. to rent cars for services like Uber and DoorDash. Zaid expressed confidence that Getaround, as the leading global and digital carsharing marketplace, is well positioned for the future.
Getaround’s revenue grew by 42% year-over-year, as per its third-quarter earnings report. However, profitability remains a distant goal. During the same quarter, Getaround faced $42.9 million in operating expenses and recorded a net GAAP loss of $27.3 million. Even with more favourable profit calculations, Getaround remained unprofitable in the third quarter, with an adjusted EBITDA of -$11.3 million over the three-month period.
