Getaround, a peer-to-peer car rental platform, is shutting down its US operations, just a year after restructuring and laying off 30% of its North American workforce. The company, which allows vehicle owners to rent out their cars, trucks, and SUVs to others, will now focus on its European business, operating in six countries, including Norway, Spain, France, Germany, Belgium, and Austria.

In a regulatory filing and an email sent to US customers, Getaround announced that it is "at risk of no longer being able to provide liability insurance coverage in the US." The company urged customers to return car rentals by the end of Wednesday to avoid any coverage gaps, warning that they may be personally responsible for ensuring the required liability insurance coverage if they don't comply.

Getaround's car protection program will no longer apply to any vehicle not returned by the end of the day, leaving customers responsible for any damages. The company's HyreCar business, which it acquired in 2023 for $9.45 million, is also closing.

Getaround, founded in 2009 in San Francisco, has had a tumultuous history. The company was a venture capital darling, raising over $750 million from high-profile investors, including Softbank Vision Fund, Menlo Ventures, and Reid Hoffman. It expanded into other cities and eventually Europe with its $300 million acquisition of Drivy and Norwegian car rental company Nabobil in 2019.

However, Getaround's fortunes took a turn for the worse after going public in 2022 via a merger with a special purpose acquisition company. The company received a delisting warning notice from the New York Stock Exchange and underwent layoffs in 2023 and 2024.

The board approved an "orderly wind down" of the car-sharing business in the United States, which includes laying off all US employees, with the majority of those workers ending their employment on February 14. Getaround estimates that it will incur charges of between $1.5 million to $2 million in connection with the reduction-in-force.

Interim CEO and COO AJ Lee, who will be stepping down from the position, said in a statement that the decision to shut down US operations was "incredibly difficult" and only made after careful consideration of various strategic options. Lee attributed the decision to an "ongoing lack of liquidity" that made US operations no longer viable.

The shutdown of Getaround's US operations raises questions about the future of the peer-to-peer car rental market and the challenges faced by companies in this space. As the company focuses on its European business, it remains to be seen how this strategic shift will impact its long-term viability.

Getaround's demise in the US serves as a cautionary tale for startups and entrepreneurs, highlighting the importance of careful financial planning and strategic decision-making in the face of adversity.