Turo Scraps IPO Plans - What You Need to Know

Turo Halts IPO Plans

Turo has officially withdrawn its plans for an initial public offering (IPO), bringing an end to a three-year period of preparation for entering the public market, as detailed in a recent regulatory filing.

Company Overview

Founded in 2010, Turo facilitates a peer-to-peer car-sharing service, enabling private vehicle owners to rent out their cars through the company’s platform – a website and mobile application.

Often likened to the Airbnb model for automobiles, Turo initially filed for an IPO in January 2022. However, subsequent shifts in market conditions and a deceleration in the company’s growth trajectory led to this decision.

Recent Industry Trends

This development follows closely after Getaround, another peer-to-peer car-sharing company, ceased its U.S. operations. While both companies originated as venture-backed enterprises, Getaround previously entered the public market in 2022 through a merger with a special purpose acquisition company (SPAC).

Current Operational Status

Despite the withdrawn IPO, Turo continues to operate in multiple countries, including the United States, Canada, Australia, and France.

As of September 2024, the company reported a substantial user base consisting of 150,000 active hosts, 350,000 listed vehicles, and 3.5 million registered guests.

CEO Statement

Andre Haddad, CEO of Turo, communicated via email that the board of directors determined that the current environment is not conducive to a successful public offering.

He further emphasized the company’s robust financial performance, noting revenue growth from $150 million in 2020 to $958 million in 2024, and indicated future investment strategies.

Future Investment Plans

“Remaining a private entity will allow us to prioritize strategic investments in the business, fostering long-term value for all stakeholders,” Haddad stated.

He highlighted Turo’s leadership position in the car-sharing market across its operating regions – the U.S., Canada, France, Australia, and the UK – attributing this success to a commitment to exceptional host and guest experiences.

Revenue Growth and Deceleration

While Turo’s revenue has consistently increased, the rate of growth has diminished over time.

In 2021, the company generated $469 million in revenue, representing a significant 213% year-over-year increase, partially attributed to the impact of the COVID-19 pandemic.

Revenue further rose to $746.6 million in 2022, but with a reduced year-over-year growth rate of 59%. In 2023, revenue reached $879.7 million, showing an 18% year-over-year increase.

Profitability

Turo achieved profitability in 2022, reporting a net income of $154.7 million. However, this figure decreased to $14.7 million in 2023.

Full-year financial results for 2024 have not yet been disclosed.

Essentially, a downturn in performance during 2023 was followed by a recovery in 2024, though not to the extent required to confidently proceed with the planned IPO.