Getaround Inc said that it will scale its car sharing platform by acquiring the assets of HyreCar, another car sharing marketplace for $9.45 million.
San Francisco-based Getaround said that it expects to realize up to $75 million of run rate annualized gross booking value from the deal, which will contribute to positive adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization profitability. The deal is expected to close by May 16, 2023.
Investors reacted to the news, sending Getaround shares up nearly 70% to $0.56 in morning trade on the New York Stock Exchange.
“HyreCar created the gig economy carsharing category with an asset-light model, extensive user data and strong risk management solutions,” Getaround founder and CEO Sam Zaid said in a statement.
“The assets not only offer solid fundamentals that contribute to both the top and bottom lines, but fits well symbiotically with Getaround, our technology, and future growth plans. Getaround’s DNA in connected, digital (keyless) carsharing and its global reach enables HyreCar hosts to grow their businesses and unlock more earnings potential.”
In February this year, Getaround unveiled a restructuring plan, promising to streamline operations and reduce costs “to achieve a leaner path to profitability.”
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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