Oct 14, 2020 - Economy

Car rental startup Getaround raises $140 million

Kia Kokalitcheva

Illustration of car with “add to cart” icon — Illustration: Eniola Odetunde/Axios

Peer-to-peer car rental company Getaround said Wednesday that it raised $140 million in new funding.

Why it matters: This comes near the end of a roller-coaster year for Getaround, which saw bookings drop by 75% at the start of the pandemic, but since has seen revenue double from pre-pandemic levels.

PeopleFund led the round, and was joined by Reinvent Capital, Henry McGovern, Pennant Capital and VectoIQ partners.

The big picture: The car rental market was significantly hit by the pandemic, with Hertz filing for bankruptcy in May, while others like Avis have implemented layoffs.

"As restrictions came into place around the world, we saw a progressively increasing initial impact — but we didn't go to zero," co-founder and CEO Sam Zaid tells Axios, adding that urban dwellers have sought out personal transportation options for essential needs and local travel.
San Francisco-based GetAround also did layoffs and reportedly sought a buyer before its business stabilized.

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Car rental startup Getaround raises $140 million

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