Getaround Restructures and Cuts Workforce: A Bumpy Road to Profitability

Getaround to Cut 30% of North American Workforce in Restructuring to Prolong Capital Runway

Car-sharing company Getaround has reduced its US workforce by a third.

Getaround, the popular company that allows vehicle owners to rent out their cars, trucks, and SUVs to other peers, is facing a bumpy road to profitability. In an effort to reduce costs and extend its cash runway, the company has announced a restructuring plan that includes cutting 30% of its North American workforce. 🚗💔

The Restructuring Plan

Getaround declared in a recent statement that it will restructure its workforce and operations to streamline expenses and accelerate its journey to profitability. The company did not disclose the exact number of employees affected in North America, as well as in Europe where it also operates. However, according to its most recent earnings report, Getaround had 283 full-time employees as of December 31, 2022. This number has fluctuated since then due to a previous 10% workforce reduction in February 2023, which aimed to achieve a “leaner path to profitability.” The company also made headlines in May 2023 for its acquisition of Hyrecar.

The Cost-Saving Impact

Getaround anticipates that this new restructuring effort will result in savings of approximately $7 million on an annualized basis. However, the company expects to incur restructuring costs of up to $1 million due to the workforce reductions. These cost-saving measures are essential for Getaround’s focus on profitability and sustainable business growth. 📉💰

The CEO’s Perspective

Sam Zaid, the CEO of Getaround, expressed the company’s commitment to achieving profitability while acknowledging the difficulty of the workforce reduction program. Zaid highlighted the significant progress made over the past year, including improvements in revenue growth, unit economics, adjusted EBITDA profile, and operating efficiency. Getaround has recently launched Trustscore AI, an innovative artificial intelligence model that enhances the safety and economics of the car-sharing marketplace. Additionally, the company released a powerful new global app that enables seamless trip coordination across the United States and Europe. Furthermore, Getaround expanded into gig carsharing, allowing gig workers across the US to rent cars for services like Uber and DoorDash. As the only truly global and digital carsharing marketplace and the leader in gig carsharing, Getaround believes it is increasingly well positioned for the future.

A Roadmap to Profitability

While Getaround has experienced revenue growth, as evidenced by a 42% year-over-year increase reported in its third-quarter earnings, profitability remains elusive. In the same quarter, the company recorded operating expenses of $42.9 million and a net loss of $27.3 million on a GAAP basis. Even when considering more generous profit calculations, Getaround still reported an adjusted EBITDA of -$11.3 million during the three-month period. This serves as a reminder that sustainable growth and profitability do not always move in sync in the fast-paced world of technology.

Q&A: Addressing Readers’ Concerns

Q: How will the workforce reduction impact Getaround’s services? A: While the workforce reduction may result in some adjustments, Getaround remains committed to providing quality car-sharing services. The restructuring aims to improve the company’s overall financial health and pave the way for long-term sustainability.

Q: Will Getaround’s restructuring affect its expansion plans? A: The restructuring is primarily focused on optimizing costs and improving profitability. While specific expansion plans may be subject to evaluation, Getaround’s commitment to being a global and digital carsharing marketplace remains unchanged.

Q: How does Getaround plan to address safety concerns with its car-sharing platform? A: Getaround has recently launched Trustscore AI, an innovative artificial intelligence model designed to enhance the safety and economics of its car-sharing marketplace. The company continuously invests in improving the safety and trustworthiness of its platform.

The Future of Getaround

The challenges faced by Getaround are not unique in the tech industry. Achieving profitability while maintaining steady growth is a delicate balance that many startups strive for. As the car-sharing market continues to evolve, Getaround’s restructuring efforts and cost-saving measures may put it on a more sustainable path. By addressing profitability concerns and implementing advanced technologies like Trustscore AI, Getaround signals its determination to thrive. 🚀💪

References

1. Apple Vision Pro M2 Chip Said to Have 10 GPU and 8 CPU Cores
2. PayPal joins the tech layoff wave with major workforce reduction
3. iRobot and Amazon Call It Quits, Terminate Acquisition Agreement
4. Growth is Good, But Sustainable Growth is the Key to Success

Now, dear readers, what do you think about Getaround’s restructuring plan? Share your thoughts with us in the comments below and let’s keep the discussion going! Don’t forget to hit the share button and spread the word on social media. Together, we can unravel the captivating world of technology! 🎉✨

• getaround
• layoffs
• Transportation