Getaround, a Silicon Valley car rental startup, has raised new money to meet demand amid a recovery in short haul travel. The startup, which allows customers in over 100 cities to instantly rent nearby cars, announced today that it has raised $ 140 million in a Series E deal, bringing its known total funding to $ 600 million. Dollar amounts.
The Series E deal was led by PeopleFund with new investors including Reid Hoffmans and Mark Pincus’ Reinvent Capital, AmRest Founders Henry McGovern, Pennant Investors, VectoIQ partners Steve Girsky, Mary Chan and Julia Steyn who are also raising funds. Participating past investors include SoftBank Vision Fund, Menlo Ventures and others.
The money comes after the car sharing service faced its own hurdles before and during the coronavirus pandemic. In January, the startup reportedly laid off 1
Now, in a statement to TechCrunch, Zaid said that “Softbank has been extremely supportive of Getaround at every critical stage of our journey this year, including January and through COVID.” The above-mentioned investor was involved in the last financing.
The pandemic appears to have moved from a pain point to a growth opportunity at Getaround. After the March layoffs, Getaround returned in May: people didn’t want to fly because they ran the risk of catching COVID-19, but they didn’t mind driving. Getaround focused on contactless access to passenger cars and improving the platform. Getaround found green shoots when short haul travel to local joints became a viable option for those looking for a way to travel. According to Zaid, Getaround hired all employees on leave by July 1.
Zaid estimates that Getaround has more than doubled its global sales from the pre-COVID base and says gross margins have continued to improve. The funding raised in the summer is intended to help the company invest in auto technology, attract new partners, and achieve global profitability.
Getaround currently has over 6 million users worldwide, according to Zaid.
Getaround isn’t the only one benefiting from the new travel taste buds of consumers. Airbnb, which has cut 1,900 jobs, or 25% of its total global workforce, is finding hope to focus on local rentals. According to WSJ, in June Airbnb completely redesigned its website and algorithm to show travelers where to rent in their neighborhood. The travel company is scheduled to go public in November.
Along with the financing, Getaround announced four new executives: Head of North American Business Dan Kim, who previously served as Head of Airbnb plus and Head of Global Sales and Delivery at Tesla; CFO Laura Onopchenko, former CFO of NerdWallet; Vice President, People and Culture Tia Gordon, formerly Director of People Operations at Google; and Vice President, Customer Experience Ruth Yankoupe, former Vice President, Customer Experience at OYO.