Getaround, Inc. (GETR) is a global carsharing marketplace that is revolutionizing the way people access and utilize vehicles. The company's innovative platform connects car owners, known as "hosts," with individuals seeking short-term car rentals, referred to as "guests." By leveraging its proprietary technology, Getaround has created a seamless, digital, and on-demand carsharing experience that benefits both hosts and guests.
Business Overview
Getaround was founded in 2011 with the mission of reimagining traditional car ownership. The company's platform allows hosts to earn income by sharing their vehicles with pre-qualified guests, while guests can conveniently access a wide range of vehicles without the hassle of traditional car rental services. Getaround's technology-driven approach has enabled the company to expand its operations globally, with a presence in major U.S. cities and select European markets, including France and Norway.As of March 31, 2024, Getaround's platform supports approximately 2.1 million unique guests and has approximately 75,000 active cars in more than 1,000 cities across 8 countries worldwide. The company has facilitated approximately 8.1 million carsharing trips, and its hosts have earned more than $540.0 million through the Getaround marketplace.
Getaround's Proprietary Technology
At the heart of Getaround's success is its proprietary Getaround Connect Cloud Platform, which creates a seamless digital experience for both hosts and guests. The platform allows guests to instantly find and book cars nearby, while hosts can easily manage their vehicle listings and earnings. The platform's advanced features, such as dynamic pricing algorithms and data analytics, enable Getaround to optimize the marketplace and provide a superior experience for its users.Financials
For the fiscal year ended December 31, 2023, Getaround reported annual revenue of $72.68 million, a decrease of 5.2% compared to the prior year. The company's annual net loss was $113.95 million, and its annual operating cash flow and free cash flow were -$56.12 million and -$61.33 million, respectively.In the first quarter of 2024, Getaround's total revenues increased by 49% to $17.16 million, compared to $11.52 million in the same period of the prior year. This growth was primarily driven by the acquisition of HyreCar Inc. in May 2023, which contributed $6.6 million in incremental service revenue. However, the company's net loss for the quarter widened to $30.97 million, compared to a net loss of $22.80 million in the first quarter of 2023.
Getaround's Gross Booking Value (GBV), a key metric that represents the total dollar value of all service transactions on the platform, increased by 41% to $44.93 million in the first quarter of 2024, compared to $31.91 million in the same period of the prior year. This growth was driven by the HyreCar acquisition and improvements in Getaround's revenue management strategies, which generated higher GBV per trip.
Geographical Breakdown
Getaround's revenue is primarily generated from two geographical segments: the United States and Europe. In the first quarter of 2024, the company's service revenue from the United States was $11.39 million, while its service revenue from Europe was $5.42 million. Lease revenue, which represents the company's sublease of dedicated parking spaces to hosts, was $0.12 million in the United States and $0.23 million in Europe during the same period.Liquidity
As of March 31, 2024, Getaround had $24.54 million in cash and cash equivalents, compared to $15.62 million as of December 31, 2023. The company's current ratio, a measure of its ability to meet short-term obligations, was 0.43 as of March 31, 2024.Getaround has incurred cumulative losses since its inception and expects to continue incurring losses for the foreseeable future as it invests in the development and growth of its platform. The company's ability to fund its operations and capital expenditures beyond its current cash resources will depend on its ability to generate cash from operating activities, which is subject to future operating performance and general economic conditions.
Risks and Challenges
Getaround faces several risks and challenges that could impact its future performance. These include intense competition in the carsharing market, regulatory uncertainties, and the potential impact of global events on travel trends and the broader economy. The company's ability to maintain and grow its host and guest base, as well as its ability to effectively manage its operations and costs, will be critical to its long-term success.Guidance and Outlook
Getaround has not provided any formal guidance or outlook for the remainder of 2024. However, the company's recent acquisition of HyreCar Inc. and its ongoing efforts to improve its revenue management strategies suggest that the company is focused on driving growth and improving its financial performance.