Gatoround suddenly stops us car sharing operations

Gatoround, a company that helps the owners of the vehicle to hire their cars, trucks and other companions of their cars, trucks and SUVs, one year after cutting 30% of North American employees. Closing the operation. Reorganization. Its a hierarchy business, which he got in 2023 For .49.45 millionAlso closed.

The company said on Wednesday that Regulatory filing In the email sent to US customers, it is now focused on its European business where it operates in six countries, including Norway, Spain, France, Germany, Belgium and RIA Stria.

The email that has been seen by Techcranch requests customers to return car rental to avoid any coverage gaps by the end of Wednesday and said “is no longer able to provide liability insurance cover in the US.”

“If you do not, you are personally responsible to make sure you have the required liability insurance coverage,” reads the email. Gatoround said its car protection program would no longer be applicable to any vehicle that is not returned by the end of the day, meaning that customers would be responsible for any loss.

Gatoround, which was founded in San Francisco in 2009 and in 2011, was a Techcranch Startup Battlefield Finalist, its roller coaster history.

The company was a VC Darling, which increased over 50 750 million from high profile investors. Million 300 million Round led by Softbank Vision Fund. Other GetRound Investors have included Menlo Ventures, People’s Fund, Reed Hoffman and Mark Pinxus Rinvent Capital and Vectoic Partners Steve Girsky, Mary Chan and Julia Stan.

Gatoround used that money to expand to other cities and eventually to Europe Million editing 300 million driving And Norwagon car rental company NabobilBoth in 2019.

Company Went public in 2022 Special purpose was done by merger with editing company, but soon got into trouble. One receives one of the months within the month Warning notice From the New York Stock Exchange. He also went through a sapphire 2023 And 2024.

‘Below the tidy winds’

The board approved a “orderly wind down” in the car-sharing business in the United States on February 7, which includes the separation of all US employees, according to the regulatory filing posted on Wednesday. He will terminate their employment on February 14 to help most of the workers close.

GetAround estimates that it will charge $ 1.5 million to $ 2 million in terms of reduced-in-force.

This tidy wind looks chaotic for any customers who were an existing or planned get -round rent. In an email to customers, Gatoround said it would support the rental (including insurance cover) by the end of Wednesday, which would have some time left to return the vehicles to the customers. The company has also canceled any US fares.

The email reads, “We are working together with hosts and drivers to return vehicles as soon as possible.” “Any pending claims or balance will be controlled by the wind-down process.”

The interim CEO and COO AJ Lee, who will step down, said in a statement that “it was an extremely difficult decision, which was not made lightly and only after careful consideration of various strategic options.”

Lee added, “Despite the overall profitability and significant improvement in widespread restructuring efforts, the company has faced a constant lack of liquidity that has no longer made US operations practical.”