Proactive actions will optimize Getaround’s cost structure in response to near-term macroeconomic uncertainty, while maintaining focus on innovation and sustainable, profitable growth
Getaround, the world’s first connected carsharing marketplace, announced the Company will streamline operations and reduce costs to achieve a leaner path to profitability. These changes also include a workforce reduction, effective immediately, that impacts approximately 10% of the Company’s current staff. The restructuring plan also includes significant reductions to other operating expenses, including reducing the Company’s contract workforce, and outside professional services. This revised global business strategy is intended to fortify the Company’s path to achieve sustainable profitability and long-term growth. Together, these reductions to the Company’s operating expenses are estimated to result in cost savings of between $25 and $30 million on an annualized run-rate basis.
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“In response to an uncertain near-term macroeconomic outlook, which has hit technology companies particularly hard, Getaround has made the decision to streamline its operations,” said Sam Zaid, Getaround CEO. “These proactive changes include a difficult, but necessary, reduction in our North American workforce. Through these changes, we will maintain and prioritize Getaround’s spirit of innovation and long-term focus on profitably growing our global marketplace at a measured and efficient pace, while, at the same time, optimize the Company’s underlying cost structure. Getaround continues to benefit from strong demand in the U.S. and Europe, as we continue to lead the digital carsharing transformation.”
Zaid continued, “While this was a necessary step to maintain financial health and the long-term success of Getaround, with much sadness, I want to say thank you to our departing colleagues for your contributions, the energy you have brought to the team, and the impact you have had building Getaround into a global marketplace.”
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Offering a 100% digital experience, Getaround makes sharing cars and trucks simple through its proprietary cloud and in-car Connect® technology. The company’s mission is to empower people to carshare everywhere and 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 aims 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
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