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Turo (company)

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Turo Inc.
FormerlyRelayRides (2009–2015)
Company typePrivate
IndustryCar sharing
FoundedAugust 2009 (2009-08) in Boston, Massachusetts, U.S.
FounderShelby Clark
HeadquartersHunter–Dulin Building,
San Francisco, California
,
U.S.
Area served
  • Australia
  • Canada
  • France
  • United Kingdom
  • United States[1]
Key people
Andre Haddad (CEO)
RevenueIncrease US$879.7 million (2023)[2]
OwnerIAC Inc. (31%)[3]
Number of employees
931 (2023)[1]
Websiteturo.com

Turo Inc. is an American peer-to-peer carsharing company based in San Francisco, United States. The company allows private car owners to rent out their vehicles via an online and mobile interface in four countries (United States, Canada, United Kingdom, and Australia)[4] and new corporate owners to rent out their cars in France in addition to the four previous countries.

In July 2019, the American holding company IAC invested $250 million in Turo, a deal that valued the company at more than $1 billion.[5][6] According to company filings, as of March 2024 the site had 360,000 active vehicle listings.[7]

Founding

Turo was launched as RelayRides in Boston in June 2010.[8] The peer-to-peer car-sharing concept was inspired by similar online marketplaces such as Airbnb and eBay. In late 2010, the company expanded to San Francisco, where it is now headquartered.[9] In 2012, it launched nationwide in the U.S.[10]

Initially, renting a car through RelayRides required installing an in-car device that enabled GPS monitoring, remote unlocking, and smart card entry, similar to Zipcar. In 2012, Turo partnered with General Motors and their OnStar division, planning to develop technology for users to open their cars remotely without installing additional technology.[11] In 2013, however, Turo discontinued both its in-car device and its Onstar integration in favor of in-person key exchange.[12]

Between 2010 and 2014, RelayRides received $52.5 million in funding from Canaan Partners,[13] August Capital, Google Ventures,[14] Shasta Ventures, and Trinity Ventures.[15]

Rebranding and expansion

In November 2015, RelayRides changed its name to Turo in order, the company said, to reflect the company's shift away from short-term to long-term rentals.[16] Forbes included it among 14 "hottest on-demand startups" in 2015, with a valuation of $311 million.[17]

In 2016 and 2017, Turo launched in three Canadian provinces: Alberta, Ontario, and Quebec.[18][19][20] Also in 2016, Turo launched in the United Kingdom.[21]

In November 2018, Turo introduced a new in-car device allowing GPS monitoring and remote unlocking through the Turo app.[22] In May 2019, Turo announced Turo Go Digital to offer keyless entry into vehicles without in-car devices.[23]

In July 2019, InterActiveCorp (IAC) invested $250 million in venture capital funding.[24] The investment made IAC Turo's largest shareholder.[24]

In 2022, Turo acquired a car sharing service in France called OuiCar for an undisclosed amount.[25] It expanded to the U.S. state of New York in June 2022 after the 2021 passing of a peer-to-peer car sharing bill in the state, SB 6715.[26] Turo expanded to Australia later that year.[27]

Services

Unlike traditional car-rental services, Turo does not own or maintain any cars. The company offers a platform on which car owners and car renting companies can rent their cars.[28] Turo claims that its rental costs are lower compared to traditional car rental services.[29][30]

People or companies who wish to rent their cars can register their cars online to be rented by other Turo members. The car owner states when and where the car will be available. A Turo member who wants to rent a car reserves a specific time slot for the car online. Turo takes 10 to 40 percent of rental income, depending on the insurance coverage it provides the car owner.[31][32][33]

On June 28, 2022, a California Appellate Court found that Turo is not a car rental company at all.[34] Their reasoning was that Turo is merely an online platform that helps car owners find people to rent from them.

Controversy

In May 2013, the New York State Department of Financial Services (DFS) warned that RelayRides had misrepresented the impact on insurance coverage for New Yorkers who rent out their vehicles on the platform.[35] In response, the company suspended operations in New York State pending further decision from the DFS. In March 2014, the DFS fined RelayRides $200,000, with their investigating having found "false advertising, unlicensed insurance activity, and other violations."[36] Turo was permitted to partially reopen their platform in New York State in January 2021.[37]

See also

References

  1. ^ a b "Registration Statement Amendment (Form S-1/A)". U.S. Securities and Exchange Commission. March 5, 2024.
  2. ^ Wilhelm, Alex (March 8, 2024). "Profitable car rental service Turo is still ready for an IPO, but its growth cratered in 2023". techcrunch.com. Retrieved May 2, 2024.
  3. ^ Savitz, Eric J. (May 9, 2023). "IAC Earnings Soar on MGM Stake, but the Weak Ad Market Remains a Drag". Barron's.
  4. ^ "Ranking the top-earning cars on Turo | Turo Carculator". turo.com. Retrieved March 23, 2021.
  5. ^ "IAC invests $250 million in car-sharing company Turo". CNBC. July 17, 2019.
  6. ^ "IAC to Invest $250 Million in Car-Sharing App Turo". WSJ.[permanent dead link‍]
  7. ^ Wilhelm, Alex (March 8, 2024). "Profitable car rental service Turo is still ready for an IPO, but its growth cratered in 2023". TechCrunch.
  8. ^ "Car-sharing revs up: Teaming up with the Joneses". The Economist. April 22, 2010. Retrieved January 20, 2016.
  9. ^ Levy, Ari (December 14, 2010). "Zipcar competitor RelayRides comes to S.F." SFGate.
  10. ^ Anthony Ha (March 5, 2012). "Peer-to-Peer Carsharing Goes National With RelayRides' Big Launch". TechCrunch.
  11. ^ Ryan Lawler (September 9, 2012). "How RelayRides' GM-OnStar Partnership Unlocks Doors — And A Potential 15M Cars For Its Fleet". TechCrunch.
  12. ^ "Long Duration Rentals Fuel 3x Growth at RelayRides". RelayRides. Archived from the original on October 24, 2013.
  13. ^ Lawler, Ryan (June 24, 2014). "Car-Sharing Startup RelayRides Raises $25 Million In Funding Led By Canaan Partners". TechCrunch.
  14. ^ Lynley, Matthew (December 14, 2010). "Google Drops Bank in RelayRides to Turn Your Car Into a Zipcar". The New York Times.
  15. ^ Lawler, Ryan (August 12, 2014). "RelayRides Adds $10 Million From Trinity And Looks To Expand Peer-To-Peer Airport Rentals". TechCrunch.
  16. ^ "Turo turns strangers into car-sharers". The Columbian. December 26, 2015.
  17. ^ Brian Solomon (December 29, 2015). "The Hottest On-Demand Startups Of 2015". Forbes.
  18. ^ Mudhar, Raju (April 19, 2016). "'Airbnb for cars' comes to Canada, lets you rent your ride". The Star.
  19. ^ Sagan, Aleksandra (April 19, 2016). "Want to make some money renting out your car? Here's how". CTVNews. Retrieved December 12, 2017.
  20. ^ "Turo launches 'Airbnb for your car' in British Columbia". Vancouver Sun. October 3, 2017. Retrieved January 5, 2018.
  21. ^ Price, Rob; UK (December 16, 2016). "but there's a catch". Business Insider. Retrieved December 12, 2017.
  22. ^ Korosec, Kirsten (November 27, 2018). "Turo's new dongle will let customers instantly find and unlock cars". TechCrunch.
  23. ^ "Smartcar + Turo partner for connected mobility". May 2019.
  24. ^ a b Farrell, Maureen (July 17, 2019). "IAC to Invest $250 Million in Car-Sharing App Turo". The Wall Street Journal. Retrieved June 19, 2020.
  25. ^ "Turo Acquires Car-Sharing Service OuiCar to Expand in Europe". Bloomberg.com. June 1, 2022.
  26. ^ Bellan, Rebecca (June 1, 2022). "Car-sharing startup Turo expands to New York and France". TechCrunch.
  27. ^ "Turo Opens for Business in Australia". Bloomberg News. November 30, 2022.
  28. ^ Cody Barbierri (December 1, 2009). "RelayRides launches first peer-to-peer carsharing service". Venturebeat.
  29. ^ Ken Belson (September 10, 2010). "Baby, You Can Rent My Car". The New York Times. Retrieved January 20, 2016.
  30. ^ Marc Levy (July 17, 2010). "RelayRides challenges Zipcar, marketing with teams on foot". Cambridge Day. Retrieved January 20, 2016.
  31. ^ Rogers, Roo, Botsman, Rachel (2010). What's Mine is Yours.{{cite book}}: CS1 maint: multiple names: authors list (link)
  32. ^ Anieca Ayler (February 23, 2015). "The Airbnb of Cars Can Save (or Make) You Money". 5280: The Denver Magazine. Archived from the original on March 30, 2017. Retrieved February 18, 2016.
  33. ^ Kirsner, Scott (April 12, 2010). "RelayRides: Like Zipcar without the car fleet". Boston.com. Retrieved June 1, 2010.
  34. ^ "Court Rules Turo Not a Car Rental Company". June 30, 2022.
  35. ^ Siemaszko, Corky (May 15, 2013). "RelayRides is taking New Yorkers for a ride, the state claims". New York Daily News. Retrieved October 9, 2024.
  36. ^ Taylor, Colleen (March 10, 2014). "Car-Sharing Startup RelayRides Hit With $200K Fine From New York State For Insurance Violations". TechCrunch. Retrieved October 9, 2024.
  37. ^ "Car-Sharing Company Turo Returns to New York in Limited Form". Bloomberg.com. December 3, 2020. Retrieved October 9, 2024.
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