Car-sharing company Getaround cuts a third of its US workforce

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Getaround, a company that helps vehicle owners lease their cars, trucks and SUVs to other peers, is cutting 30% of its North American workforce as part of a restructuring.

The company said in a statement it will restructure its workforce and operations to reduce costs in hopes of expanding its cash flow and accelerating “its path to profitability.”

Getaround would not disclose how many workers it currently employs in North America or Europe, where it also operates. The company employed 283 full-time employees as of Dec. 31, 2022, according to its latest full-year earnings report. This figure has fluctuated since then due to 10% reduction in workforce in February 2023, which was also carried out to “achieve a simpler path to profitability”, and a takeover of Hyrecar in May 2023.

Getaround said this latest restructuring would result in savings of approximately $7 million on an annualized basis. The company said it expects restructuring costs of up to $1 million related to the workforce reductions.

“Our focus on profitability and sustainable growth of the business necessitated this difficult downsizing program,” Sam Zaid, CEO of Getaround, said in a statement. “We have made significant progress over the past year, including continued improvements in revenue growth and unit profitability, as well as the overall adjusted EBITDA profile and operational efficiency. We launched a new artificial intelligence model (Trustscore AI) to improve the security and economics of our market, deployed a powerful new global application that unifies and enables seamless coordination of travel in the United States and Europe, and expanded to on-demand ridesharing, enabling gig workers around the world. the United States to rent cars to drive for services like Uber and DoorDash. As the only truly global, digital carsharing marketplace and a leader in on-demand carsharing, we believe Getaround is increasingly positioned for the future.

Getaround saw increase in income, according to its third-quarter earnings report which revealed a 42% year-over-year increase. Although progress has been made, profitability is still far away. During the same quarter, Getaround reported operating expenses worth $42.9 million and a loss of $27.3 million on a net GAAP basis. Even using more generous earnings calculations, Getaround is still unprofitable in the third quarter, with adjusted EBITDA of -$11.3 million over the three-month period.

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