As part of a reorganization, Getaround, a company that helps people rent out their cars, trucks, and SUVs to other people, is letting go of 30% of its North American staff.
In a statement, the company said it would reorganize its operations and staff to cut costs. The goal is to create more cash flow and speed up “its path to profitability.”
The company Getaround wouldn’t say how many employees it has in North America or Europe, where it also does business. The most recent report on the company’s full-year earnings says that as of December 31, 2022, it had 283 full-time workers. Since then, that number has changed because the company bought Hyrecar in May 2023 and cut its staff by 10% in February 2023 in order to “achieve a leaner path to profitability.”
According to Getaround, this new reorganization will save the company about $7 million per year. The business said that it expects the layoffs to cost it up to $1 million in restructuring costs.
“Being focused on making money and long-term business growth made this difficult workforce reduction program necessary,” Getaround CEO Sam Zaid said in a statement. “In the past year, we’ve made a lot of progress. For example, our overall adjusted EBITDA profile and running efficiency have gotten better, and our revenue growth and unit economics have been steadily better. We released Trustscore AI, a new artificial intelligence model that makes our marketplace safer and more profitable. We also released a powerful new global app that unifies and makes trip planning easier across the U.S. and Europe. Finally, we added gig carsharing, which lets gig workers across the U.S. rent cars to drive for services like Uber and DoorDash. Getaround is the leader in gig carsharing and the only truly global and digital marketplace for carsharing. We think it will be a great company for the future.
According to its third-quarter earnings report, Getaround’s sales have grown. Year-over-year, they’ve grown by 42%. Even though work has been made, it will still be a while before it makes money. During the same quarter, Getaround had $42.9 million in running costs and a net GAAP loss of $27.3 million. Getaround still lost money in the third quarter, even when more generous profit estimates were used. The company’s adjusted EBITDA was -$11.3 million for that time period.
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