Getaround Announces Restructuring Plan to Accelerate the Path to Profitability
08 Février 2024 - 2:00AM
Business Wire
Anticipated cost savings of approximately $7
million on annualized run-rate basis
Getaround (NYSE: GETR) (“Getaround'' or “the Company”), the
world's first connected carsharing marketplace, today announced the
Company will restructure its workforce and operations to reduce
costs and align with the globalization of the Company’s carsharing
business, as it strives to lengthen its cash runway and accelerate
its path to profitability.
This new plan includes a workforce reduction, effective
immediately, that impacts approximately 30% of the Company’s North
American staff. The Company anticipates that this cost reduction
program will result in savings of approximately $7 million on an
annualized run-rate basis. The Company expects to incur up to $1
million in restructuring costs in connection with the workforce
reductions.
“Our focus on profitability and sustainable business growth
necessitated this difficult workforce reduction program,” said Sam
Zaid, Getaround CEO. “We’ve made significant progress over the past
year, including steady improvements in revenue growth and unit
economics, as well as in overall adjusted EBITDA profile and
operating efficiency. We launched a new artificial intelligence
model (Trustscore AI) to improve the safety and economics of our
marketplace, deployed a powerful new global app that unifies and
enables seamless trip coordination across the U.S. and Europe, and
expanded to gig carsharing, enabling gig workers across the U.S. to
rent cars to drive for services like Uber and DoorDash. As the only
truly global and digital carsharing marketplace, and as the leader
in gig carsharing, we believe Getaround is increasingly well
positioned for the future.”
Zaid continued, “I want to thank all those teammates who
contributed to the substantial progress Getaround has experienced.
While we believe this restructuring plan is the right decision for
the business, it does not diminish the challenge of letting
talented colleagues go, or the gratitude we have for the dedication
and professionalism of the team.”
About Getaround
Offering a 100% digital experience, Getaround (NYSE: GETR) makes
sharing cars and trucks simple through its proprietary cloud and
in-car Connect® technology. The company empowers consumers to shift
away from car ownership through instant and convenient access to
desirable, affordable, and safe cars from entrepreneurial hosts.
Getaround’s on-demand technology enables a contactless experience —
no waiting in line at a car rental facility, manually completing
paperwork or meeting anyone to collect or drop off car keys.
Getaround’s mission is to utilize its peer-to-peer marketplace to
help solve some of the most pressing challenges facing the world
today, including environmental sustainability and access to
economic opportunity. Launched in 2011, Getaround is available
today in more than 1,000 cities across the United States and
Europe. For more information, please visit
https://www.getaround.com/.
Forward Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Forward-looking statements generally relate to
future events, such as statements related to the expected benefits
of and timing of completion of the restructuring plan, and the
expected costs and charges associated therewith. In some cases, you
can identify forward-looking statements by terminology such as
“intends,” “plans,” and “will,” or the negative of these terms or
variations of them or similar terminology. Such forward-looking
statements are subject to risks, uncertainties, and other factors
which could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. We have
based these forward-looking statements on our current expectations
and assumptions and analyses made by us in light of our experience
and our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
are appropriate under the circumstances. However, whether actual
results and developments will conform with our expectations and
predictions is subject to a number of risks and uncertainties, many
of which are beyond our control, including the risk that the
restructuring efforts may not generate their intended cost savings
or other benefits to the extent or as quickly as anticipated; the
risk that the restructuring costs and charges may be greater than
anticipated; the risk that the Company’s restructuring efforts may
adversely affect its ability to recruit and retain skilled and
motivated personnel, and may be distracting to employees and
management; the risk that the restructuring efforts may negatively
impact the Company’s business operations and reputation with or
ability to serve hosts and guests; and the other factors under the
heading “Risk Factors” in our Annual Report on Form 10-K filed with
the SEC on November 16, 2023, and in other filings that the Company
has made and may make with the SEC in the future. All of the
forward-looking statements made in this press release are qualified
by these cautionary statements. The actual results or developments
anticipated may not be realized or, even if substantially realized,
they may not have the expected consequences to or effects on the
Company or our business or operations. Such statements are not
intended to be a guarantee of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which are made only as of the
date of this press release. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
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