Getaround

Getaround was founded in 2009 as a peer-to-peer car sharing platform, allowing car owners to rent their vehicles to others through a smartphone app. The company merged with InterPrivate II VSM Tec in December 2022, one of the last SPAC mergers of the boom era.

The car-sharing concept seemed promising: Turo had shown demand existed, and Getaround differentiated itself with connected car technology that allowed keyless access. The company also acquired European competitor Drivy in 2019, expanding internationally.

But Getaround's unit economics were deeply negative. The cost of technology (connected car hardware), insurance, customer acquisition, and operations far exceeded the commission revenue from each rental. The company was losing money on essentially every transaction.

Post-SPAC, the stock immediately plunged. Revenue stagnated while losses mounted. Getaround attempted restructuring, exiting unprofitable markets and cutting staff, but it was too late. By 2024, the company was in penny-stock territory and headed for insolvency.