Following a recovery in local travel, Getaround, a car rental company based in Silicon Valley, has secured additional funding to address increasing customer demand. The company, which enables users to quickly rent vehicles from individuals in over 100 cities, revealed today that it has obtained $140 million in a Series E funding round, increasing its total venture capital funding to $600 million.

This Series E investment was spearheaded by PeopleFund, with participation from new investors such as Reinvent Capital, founded by Reid Hoffman and Mark Pincus, Henry McGovern of AmRest, Pennant Investors, and VectoIQ partners Steve Girsky, Mary Chan, and Julia Steyn. Existing investors, including SoftBank Vision Fund and Menlo Ventures, also contributed to the round.

This new capital arrives after Getaround encountered challenges both before and during the coronavirus pandemic. Earlier this year, the company reportedly reduced its workforce by 150 employees, streamlining field operations and several international teams. In March, the CEO, Sam Zaid, reported a 75% decrease in bookings, leading to a further reduction of 100 employees. Zaid attributed some of these difficulties to issues within SoftBank, which led a $300 million Series D investment in the company in mid-2018.

Zaid now states that “Softbank has been a remarkably supportive partner to Getaround throughout all critical phases this year, including in January and during the COVID-19 pandemic,” as communicated to TechCrunch. The investor also participated in the most recent funding round, as previously mentioned.

The pandemic appears to have shifted from a detriment to a catalyst for growth for Getaround. Following the March layoffs, the company observed a resurgence in demand starting in May: concerns about contracting COVID-19 discouraged air travel, but driving remained a viable option. Getaround prioritized contactless vehicle access and platform enhancements. As travel to nearby destinations became a more accessible choice, the company began to see positive trends. By July 1, Getaround had reinstated all previously furloughed employees, according to Zaid.

Zaid projects that Getaround’s global revenue has more than doubled compared to pre-pandemic levels, and indicates that gross margins have continued to improve. The funds, raised during the summer, will be allocated to investments in vehicle technology, the development of new partnerships, and the achievement of global profitability.

According to Zaid, Getaround currently serves a user base exceeding 6 million people worldwide.

Getaround is not the only company benefiting from evolving consumer travel preferences. Airbnb, which reduced its global workforce by 1,900 employees (25%), is experiencing renewed optimism by concentrating on local rentals. In June, as reported by the WSJ, Airbnb completely revamped its website and search algorithm to highlight rental options within travelers’ local areas. The travel company is reportedly planning an initial public offering in November.

In conjunction with the financing, Getaround announced the appointment of four new executives: Dan Kim as Head of North American business, previously holding leadership positions at Airbnb Plus and Tesla; Laura Onopchenko as CFO, formerly the CFO of NerdWallet; Tia Gordon as Vice President of People and Culture, previously the Director of People Operations at Google; and Ruth Yankoupe as Vice President of Customer Experience, formerly the Vice President of Customer Experience at OYO.