Turo (company) explained

Turo Inc.
Former Name:RelayRides (2009–2015)
Type:Private
Foundation: in Boston, Massachusetts, U.S.
Founder:Shelby Clark
Hq Location:Hunter–Dulin Building
Hq Location Country:U.S.
Key People:Andre Haddad (CEO)
Industry:Car sharing
Revenue: (2023)[1]
Owner:IAC Inc. (31%)[2]
Num Employees:931 (2023)[3]

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]

History

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]

Funding

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]

In July 2019, InterActiveCorp (IAC) invested $250 million in venture capital funding.[16] The investment made IAC Turo's largest shareholder.[16]

Legal status in New York State

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.[17] In response, the company suspended operations in New York State pending further decision from the DFS.[18] In March 2014, the DFS fined RelayRides $200,000, with their investigating having found "false advertising, unlicensed insurance activity, and other violations."[19] Turo was permitted to partially reopen their platform in New York State in January 2021, and returned fully in 2022.[20]

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.[21] Forbes included it among 14 "hottest on-demand startups" in 2015, with a valuation of $311 million.[22]

In 2016 and 2017, Turo launched in three Canadian provinces: Alberta, Ontario, and Quebec.[23] [24] [25] Also in 2016, Turo launched in the United Kingdom.[26]

In November 2018, Turo introduced a new in-car device allowing GPS monitoring and remote unlocking through the Turo app.[27] In May 2019, Turo announced Turo Go Digital to offer keyless entry into vehicles without in-car devices.[28]

In 2022, Turo acquired a car sharing service in France called OuiCar for an undisclosed amount.[29] 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.[30] Turo expanded to Australia later that year.[31]

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.[32] Turo claims that its rental costs are lower compared to traditional car rental services.[33] [34]

People or companies who wish to rent their cars can register their cars online to be rented by other Turo users. The car owner states when and where the car will be available. A Turo user 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.[35] [36] [37]

See also

Notes and References

  1. Web site: Wilhelm . Alex . March 8, 2024 . Profitable car rental service Turo is still ready for an IPO, but its growth cratered in 2023 . May 2, 2024 . techcrunch.com.
  2. Web site: IAC Earnings Soar on MGM Stake, but the Weak Ad Market Remains a Drag . May 9, 2023 . Eric J. . Savitz . Barron's.
  3. Web site: Registration Statement Amendment (Form S-1/A) . March 5, 2024 . U.S. Securities and Exchange Commission.
  4. Web site: Ranking the top-earning cars on Turo Turo Carculator . March 23, 2021 . turo.com.
  5. Web site: IAC invests $250 million in car-sharing company Turo. July 17, 2019 . CNBC.
  6. Web site: IAC to Invest $250 Million in Car-Sharing App Turo. WSJ.
  7. Web site: Wilhelm . Alex . Profitable car rental service Turo is still ready for an IPO, but its growth cratered in 2023 . TechCrunch . 8 March 2024.
  8. News: Car-sharing revs up: Teaming up with the Joneses . The Economist . April 22, 2010 . January 20, 2016.
  9. News: Zipcar competitor RelayRides comes to S.F. . SFGate . Ari . Levy . December 14, 2010.
  10. Web site: Peer-to-Peer Carsharing Goes National With RelayRides' Big Launch . TechCrunch . Anthony Ha . March 5, 2012.
  11. Web site: How RelayRides' GM-OnStar Partnership Unlocks Doors — And A Potential 15M Cars For Its Fleet . TechCrunch . Ryan Lawler . September 9, 2012.
  12. Web site: Long Duration Rentals Fuel 3x Growth at RelayRides . https://web.archive.org/web/20131024002547/http://blog.relayrides.com/2013/09/long-duration-rentals-fuel-3x-growth-at-relayrides-in-2013/ . dead . October 24, 2013 . RelayRides.
  13. News: Lawler. Ryan. Car-Sharing Startup RelayRides Raises $25 Million In Funding Led By Canaan Partners. TechCrunch. June 24, 2014. Over the past year, peer-to-peer car rental startup RelayRides has been growing its average rental times and revenues by focusing specifically on daily and multi-day rentals. On the strength of its results, the company has raised an additional $25 million in Series B funding led by Canaan Partners..
  14. News: Google Drops Bank in RelayRides to Turn Your Car Into a Zipcar . The New York Times . Matthew . Lynley . December 14, 2010.
  15. News: Lawler. Ryan. RelayRides Adds $10 Million From Trinity And Looks To Expand Peer-To-Peer Airport Rentals. TechCrunch. August 12, 2014. When we last checked in with peer-to-peer car rental startup RelayRides about six weeks ago, it had raised $25 million in Series B funding led by Canaan Partners. Well, it wasn’t quite finished raising money, as it turns out. The company just closed on an additional $10 million in financing led by Trinity Ventures..
  16. News: Farrell . Maureen . IAC to Invest $250 Million in Car-Sharing App Turo . The Wall Street Journal . July 17, 2019 . June 19, 2020.
  17. Web site: Siemaszko . Corky . 2013-05-15 . RelayRides is taking New Yorkers for a ride, the state claims . 2024-10-09 . New York Daily News . en-US.
  18. Web site: Carrns . Ann . 2013-05-15 . Car-Sharing Service Suspended Over Insurance Concerns . 2024-10-11 . Bucks Blog . en.
  19. Web site: Taylor . Colleen . 2014-03-10 . Car-Sharing Startup RelayRides Hit With $200K Fine From New York State For Insurance Violations . 2024-10-09 . TechCrunch . en-US.
  20. News: 2020-12-03 . Car-Sharing Company Turo Returns to New York in Limited Form . 2024-10-09 . Bloomberg.com . en.
  21. Web site: Turo turns strangers into car-sharers . The Columbian . December 26, 2015.
  22. Web site: The Hottest On-Demand Startups Of 2015 . Forbes . Brian Solomon . December 29, 2015.
  23. News: 'Airbnb for cars' comes to Canada, lets you rent your ride. The Star . April 19, 2016 . Raju . Mudhar.
  24. Web site: Sagan . Aleksandra . Want to make some money renting out your car? Here's how . CTVNews . April 19, 2016 . December 12, 2017.
  25. Web site: Turo launches 'Airbnb for your car' in British Columbia . Vancouver Sun . October 3, 2017 . January 5, 2018.
  26. Web site: Price . Rob . UK . but there's a catch . Business Insider . December 16, 2016 . December 12, 2017.
  27. Web site: Korosec . Kirsten . Turo's new dongle will let customers instantly find and unlock cars . TechCrunch . 27 November 2018.
  28. Web site: May 2019 . Smartcar + Turo partner for connected mobility .
  29. Web site: Turo Acquires Car-Sharing Service OuiCar to Expand in Europe . Bloomberg.com . en . 1 June 2022.
  30. Web site: Bellan . Rebecca . Car-sharing startup Turo expands to New York and France . TechCrunch . 1 June 2022.
  31. Web site: Turo Opens for Business in Australia . . en . 30 November 2022.
  32. Web site: Cody Barbierri. December 1, 2009. RelayRides launches first peer-to-peer carsharing service. Venturebeat.
  33. News: Ken Belson. September 10, 2010. Baby, You Can Rent My Car. The New York Times. January 20, 2016.
  34. News: Marc Levy. July 17, 2010. RelayRides challenges Zipcar, marketing with teams on foot. Cambridge Day. January 20, 2016.
  35. Book: Rogers, Roo, Botsman, Rachel. What's Mine is Yours. 2010.
  36. Web site: Anieca Ayler. February 23, 2015. The Airbnb of Cars Can Save (or Make) You Money. dead. 5280: The Denver Magazine. February 18, 2016. March 30, 2017. https://web.archive.org/web/20170330235457/http://www.5280.com/news/science/digital/2015/02/airbnb-cars-can-save-or-make-you-money.
  37. News: Kirsner. Scott. April 12, 2010. RelayRides: Like Zipcar without the car fleet. Boston.com. June 1, 2010.

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