On Thursday, Turo announced the cancellation of its IPO plans, bringing an end to a three-year effort to take the online car-sharing platform public, as detailed in a regulatory filing.
Founded in 2010, Turo enables individual car owners to rent out their vehicles through its website and app. Often compared to Airbnb, but for vehicles, the company filed for an initial public offering in January 2022. However, the market conditions for an IPO shifted shortly after, leading to a slowdown in Turo’s growth.
Turo’s announcement to withdraw its IPO comes just a day after Getaround, a competitor in the peer-to-peer car-sharing market, ceased its U.S. operations. Similar to Turo’s trajectory, Getaround also began with venture capital backing but went public in 2022 through a merger with a special purpose acquisition company.
Despite the IPO setback, Turo continues to operate in the U.S. and internationally. As of September 2024, the company boasts 150,000 active hosts worldwide, offering 350,000 active vehicle listings and serving 3.5 million active guests. Turo is also present in Canada, Australia, and France.
In a statement via email, Turo CEO Andre Haddad explained that the board concluded it was not the appropriate time for the company to pursue a public offering.
Haddad emphasized Turo’s financial performance, noting revenue growth from $150 million in 2020 to $958 million by 2024, while hinting at forthcoming investment plans.
“We are committed to leveraging our position as a private entity to make strategic investments that will bolster long-term value for all stakeholders,” he stated. “Our unwavering commitment to providing an exceptional experience for our hosts and guests has positioned us as the leader in all the markets we serve, including the U.S., Canada, France, Australia, and the UK.”
While revenue has consistently risen, the company has experienced a slowdown in its growth rate.
For instance, Turo reported $469 million in revenue for 2021, reflecting a significant year-over-year growth of 213%, largely influenced by the impacts of the COVID-19 pandemic, as detailed in regulatory filings. This revenue rose again to $746.6 million in 2022, though with a reduced growth rate of 59% compared to the previous year. By 2023, revenue climbed to $879.7 million, indicating an 18% year-over-year growth.
The company achieved profitability in 2022, recording a net income of $154.7 million, but this figure declined to $14.7 million in 2023. Full-year results for 2024 remain unreported.
In summary, while business performance fell sharply in 2023, it showed signs of recovery in 2024, yet it still has not reached the necessary levels to realize that IPO aspiration.
Compiled by Techarena.au.
Fanpage: TechArena.au
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