Turo, the San Francisco-based car-sharing company, has abandoned its plans to go public nearly three years after initially filing for a US IPO. This decision has raised concerns about the P2P car-sharing market, especially following Getaround’s recent announcement to shut down its US operations.

Despite being profitable, Turo’s financial performance has shown signs of slowing growth. The company’s adjusted EBITDA fell from US$81.1 million in 2021 to US$48.8 million by the end of 2023. In the first nine months of 2024, adjusted EBITDA dropped a further 46% year-on-year to US$25.6 million. Operating income also turned negative, shifting from a US$21.1 million profit in the first nine months of 2023 to a US$9.7 million loss over the same period in 2024.

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These financial challenges have undoubtedly influenced Turo’s decision to remain private, but what does this mean for the UK market?

The UK has its own crop of car-sharing providers, including Zipcar, Drivy (now part of Getaround), Ubeeqo, Enterprise Car Club, Share Now, and Virtuo. Turo’s decision to abandon its IPO plans and Getaround’s US shutdown could have several implications for these providers.

Turo’s decision and Getaround’s US shutdown could have several implications for these providers:

  1. Increased Investor Caution: Turo’s financial struggles may lead to increased caution among investors in the car-sharing market, reducing funding opportunities for UK-based companies.
  2. Market Consolidation: With Getaround focusing on Europe, there may be opportunities for consolidation in the UK market.
  3. Regulatory Scrutiny: Financial challenges may prompt regulators to impose stricter regulations, impacting operational costs and profitability.
  4. Consumer Confidence: The news may shake consumer confidence in the car-sharing market, requiring UK providers to reassure their customers of their stability.

In response, UK car-sharing providers are likely to emphasise the opportunities for growth and innovation. This may be particularly relevant in markets where public transport is rundown and continues to be poorly incentivised by government, but elsewhere, where public transport will only improve, it feels like the writing is on the wall for the P2P car-sharing market.

See Turo abandons US IPO amid slowing growth