Getaround Announces U.S. Shutdown, Shifts Focus to European Market

Late last night, Getaround announced it will shut down its U.S. operations, including HyreCar, as part of a strategic move to preserve liquidity and maximize stakeholder value through its European business.

Rental and Insurance Implications

While ongoing rentals will be supported until February 13, 2025, all new U.S. rentals after February 11, 2025, have been canceled. Getaround has stated it will assist renters with vehicle returns and provide instructions for device removal.

Previously, Getaround’s liability insurance was provided by Assurant in most states, excluding New York. However, the company has confirmed that its liability coverage will officially end on February 13, 2025. After this date, renters must secure their own insurance coverage, and vehicles not returned by then will no longer be protected under Getaround’s car protection program, making renters fully responsible for any damages.

In response to the shifting car-sharing insurance landscape, Roamly, the insurance subsidiary of RV rental company Outdoorsy, recently introduced carshare insurance for individuals and fleet owners using rental platforms. Currently, Roamly Carshare is integrated with Getaround and HyreCar, extending protection to Power User communities. This commercial insurance product, in partnership with Mobilitas Insurance, is not available in Kentucky, New York, or Massachusetts.

Background and Financial Struggles

Getaround acquired HyreCar, a gig car-sharing marketplace, in March 2023 for $9.45 million. Prior to the acquisition, HyreCar used Apollo and Assurant for liability insurance and Sedgwick for claims processing.

Founded in 2009, Getaround has raised over $760 million in debt, equity, and post-IPO funding. The company went public in December 2022 via a SPAC merger with InterPrivate II Acquisition Corp. At its peak, the SoftBank-backed startup was valued at over $1.2 billion.

Despite multiple restructuring efforts, workforce reductions, and a leadership shakeup, Getaround struggled to maintain profitability. CEO Eduardo Iniguez, who joined in 2024, stepped down after a year, unable to turn the company around. In February 2024, the company cut 30% of its workforce, citing overhiring.

Getaround’s last reported earnings showed an $11.4 million loss, and the company had already exited New York, one of its largest markets, due to high regulatory costs.

Future Outlook: Europe Remains a Priority

In the official announcement, Getaround reassured its European users that its operations abroad remain funded and will continue.

“This has been an incredibly difficult decision, one that was not made lightly and only after careful consideration of various strategic options. Despite significant improvements in overall profitability and extensive restructuring efforts, the company has faced an ongoing lack of liquidity, making U.S. operations no longer viable. We are deeply grateful to our dedicated Getarounders and loyal hosts and guests in the U.S. for their unwavering support and commitment over the years.”

– AJ Lee, Interim CEO & COO

As of 2023, Getaround had 75,000 active cars across 1,000 cities in eight countries. Since its inception in 2009, hosts on the platform have collectively earned $540 million, while users have completed over 8 million trips.

With the U.S. market now behind them, Getaround is betting on Europe as its future growth engine.