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    Peer-to-peer car-sharing company Turo files IPO to go public – TechCrunch

    Peer-to-peer car-sharing startup Turo has released a filing to become a publicly traded company in the United States. The process that the company started secretly in August..

    The S-1 document filed with the US Securities and Exchange Commission on Monday does not contain any terms and conditions for its provision.

    Founded in 2010, Turo is compared to Airbnb, allowing private car owners to rent a car from the startup’s website or app. As of September 30, 2021, the company boasts a list of 85,000 active hosts and 160,000 active vehicles in more than 7,500 cities. Car rental prices are rising due to pandemic supply chain issues.. Despite fierce competition, Turo has certainly gained some market share due to challenges in the traditional car rental industry, but if you read the risk factors part of the S-1, its popularity It can be costly.

    Rapid financial breakdown

    First, let’s look at finance.

    According to S-1, Turo’s net sales in 2020 were $ 149.9 million, up 6% year-on-year. Net loss in 2020 was $ 97.1 million, a slight improvement from $ 98.6 million in 2019.

    Turo points out two drivers of revenue growth, especially a digital tool called the Turo Risk Score. Launched in April 2020, this feature dynamically adjusts the price Turo charges guests to complete their booking. According to Turo, the tool has helped increase the price of vehicles that hosts charge guests, as well as increase net revenue.

    In 2021, sales and losses surged.

    According to Turo, it generated $ 330.5 million in net revenue in the first nine months of 2021, an increase of 207% from $ 107.8 million in the same period in 2020. Net loss has also increased. Turo reported a net loss of $ 129.3 million over the nine months ending September 30, 2021, compared to $ 51.7 million for the same period in 2020.

    reason? Turo states on the S-1 that revenue increased as the number of booking days increased with the total booking amount per day.

    Scanning the S-1, Turo tried to do more in 2020 with less effort, and since then seems to have reinstated the financial faucet this year. The company tightened spending in 2020, with operating expenses down from $ 133.9 million in 2019 to $ 95.8 million in 2020.

    The first nine months of 2021 will tell another story. The company’s operating expenses for the first nine months of the year were $ 124.01 million, compared with $ 71.6 million in the year-ago quarter.

    Risk factor

    Risk factors facing the company include the obvious “what if people don’t use Turo” and “face competition” with similar apps and traditional car rental companies. But some others are sticking out.

    For one thing, Turo states that the COVID-19 pandemic added instability to the business. The company was forced to dismiss its staff and closed its business in Germany in 2020, but the business has returned “beyond pre-Covid levels”.

    The car rental app states that the host may be held liable for criminal activity.There seems to be no proceedings or fines yet, but in August last year Turo and other peer-to-peer rental apps turned out to have been used by criminals for trafficking And other crimes, the tendency to be admitted by the US Customs and Border Protection is on the rise near the border.

    Turo is also responsible for proceedings from cities that require years of startup to obtain a car rental permit, and more specifically from airport authorities. And in this area, Turo has actually been sued and counterclaimed. There have been four proceedings regarding the use of the airport, three of which have not yet been resolved, including those initiated by Turo v. Los Angeles.

    Opportunity and growth

    Despite the potential risks, Turo estimates the current serviceable addressable market at $ 146 billion and the total addressable market at $ 230 billion.

    “Our $ 230 billion TAM is estimated to include $ 134 billion in North America, $ 65 billion in Europe and $ 31 billion in other countries. Onboard host),” Filing said.

    In particular, the company seems ready to expand its business not only domestically but also internationally. “We are ready to make strategic acquisitions and partnerships to provide host and guest services and features that we do not currently offer. in the company. “

    under development…

    Peer-to-peer car-sharing company Turo files IPO to go public – TechCrunch Source link Peer-to-peer car-sharing company Turo files IPO to go public – TechCrunch

    The post Peer-to-peer car-sharing company Turo files IPO to go public – TechCrunch appeared first on California News Times.

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