SoftBank-backed Getaround faces layoffs
January 8, 2020
- Share:
Getaround has announced it will shed a number of its workforce in an effort to reduce costs. The car-sharing company declined to comment on specific numbers; The Information reported that around 150 individuals—roughly a quarter of its staff—will be let go. The startup is the latest SoftBank-backed company to undergo layoffs in recent months, joining WeWork and Uber. SoftBank's Oyo, a hotel operator based in India, and food automation startup Zume Pizza are also reportedly planning layoffs.
The news is a surprise turn for Getaround, which last April acquired European car-sharing startup Drivy for $300 million, and in September, was seeking to raise more than $200 million at a valuation of up to $1.7 billion, according to a PitchBook estimate. It's unclear whether new funding ever materialized. Now, the layoffs signal more trouble for the nascent car-sharing industry, which saw brands like ReachNow, Car2go and LimePod scale back or shut down operations last year.
In addition to SoftBank, Getaround is backed by investors including Menlo Ventures, Braemar Energy Ventures and Toyota.
The news is a surprise turn for Getaround, which last April acquired European car-sharing startup Drivy for $300 million, and in September, was seeking to raise more than $200 million at a valuation of up to $1.7 billion, according to a PitchBook estimate. It's unclear whether new funding ever materialized. Now, the layoffs signal more trouble for the nascent car-sharing industry, which saw brands like ReachNow, Car2go and LimePod scale back or shut down operations last year.
In addition to SoftBank, Getaround is backed by investors including Menlo Ventures, Braemar Energy Ventures and Toyota.
- Share:
-
-
-
-
Tags:
Join the more than 1.5 million industry professionals who get our daily newsletter!