Getaround Business Model

The Getaround Business Model revolves around providing a peer-to-peer car-sharing platform that allows individuals to rent out their privately owned vehicles while ensuring convenience and cost-effectiveness for both car owners and renters.

Based in San Francisco, Getaround has gained significant popularity as a trusted and reliable car-sharing service. It connects car owners who want to monetize their idle vehicles with renters needing convenient transportation options. With a seamless mobile app interface and extensive insurance coverage, Getaround ensures a smooth and secure car-sharing experience.

A brief history of Getaround

Getaround was established in 2009 by Sam Zaid, Elliot Kroo, Jessica Scorpio, and other team members. The idea for the company originated from their desire to utilize technology to revolutionize the car rental industry.

The founders recognized that private vehicles sit idle for most of their lifespan, wasting resources and having a significant environmental impact. They envisioned a platform allowing car owners to rent their vehicles to others, creating a more efficient and sustainable transportation system.

In the early stages, Getaround faced challenges in gaining traction and building a user base. However, the company persevered, continuously refining its business model and expanding its reach. The introduction of innovative features, such as remote unlocking and keyless entry, helped to enhance the user experience and attract more customers.

One key milestone in Getaround’s history was its acquisition of Drivy, a leading car-sharing platform in Europe, in 2019. This strategic move allowed Getaround to enter the European market and expand its global footprint.

Over the years, Getaround has steadily grown its network of car owners and renters, creating a vibrant and diverse community of users. The company has gained recognition and secured partnerships with major players in the transportation industry, including Uber and Toyota, further cementing its position as a critical player in the car-sharing space.

In recent years, Getaround has also embraced new technologies, such as artificial intelligence and machine learning, to optimize its operations and provide a seamless experience for its users. These innovations and a commitment to customer satisfaction and sustainability have contributed to the company’s continued success and growth.

Today, Getaround operates in numerous cities across the United States and Europe, offering a convenient and cost-effective alternative to traditional car rental services. With a mission to unlock the potential of shared mobility, Getaround is poised to continue reshaping how individuals access and utilize transportation resources.

Who Owns Getaround

A diverse group of shareholders currently owns Getaround. According to MarketScreener, the largest shareholder is SB Investment Advisers (UK) Ltd., which holds 23.13% of the company’s equities. SB Investment Advisers (UK) Ltd. is a London-based investment advisory firm focusing on technology and growth-oriented companies. Their significant stake in Getaround influences the company’s strategic decisions and direction.

InterPrivate Acquisition Management II LLC, an investment firm that specializes in acquiring and supporting high-growth companies, also holds a substantial portion of Getaround’s shares, amounting to 12.80%.

Samir M Zaid and Neil Suslak a managing partner and corporate director at Braemar Energy Ventures, are individual shareholders who hold 5.551% and 4.628% of Getaround’s equities, respectively.

Braemar Energy Ventures III LP and Braemar Energy Ventures both hold an equal portion, 4.190%, of Getaround’s equities. Braemar Energy Ventures is a venture capital firm that specializes in energy technology investments.

Interprivate LLC, Glazer Capital LLC, Sculptor Capital LP, and Pennant Investors LP hold smaller stakes ranging from 1.449% to 1.836%. These shareholders consist of investment management companies and institutional investors with diverse portfolios.

Getaround Mission Statement

Getaround’s mission statement is “to utilize its peer-to-peer marketplace to help solve some of the most pressing challenges facing the world today, including environmental sustainability and access to economic opportunity.”

How Getaround works

Getaround’s business model connects car owners with individuals needing a vehicle. Owners can list their cars on the platform, specifying availability, pricing, and other details. Renters can then browse the available vehicles in their area, select the one that suits their needs, and make a reservation.

To use Getaround’s services, owners and renters must create an account on the platform’s website or mobile app. Owners can list their cars by providing information such as make, model, year, and location. They can also set rental rates and availability preferences. Renters can search for vehicles based on location, desired rental period, and other criteria.

Getaround uses technology and data to facilitate the rental process. Renters can view photos and descriptions of available cars and reviews from previous renters. The platform also provides detailed information on insurance coverage and offers 24/7 roadside assistance for added peace of mind.

Once a rental request is made, the owner can accept or decline it. If accepted, the owner and renter coordinate the critical handover, which can be done in person or using a lockbox. Getaround provides a mobile app that allows owners to unlock and lock their cars for added convenience remotely.

During the rental period, the owner and renter have access to support from Getaround. The platform offers 24/7 customer service and roadside assistance to address any issues that may arise. Renters are responsible for returning the car in the same condition as they received it, and owners can rate their experience with the renter.

Getaround also offers a range of features and services to enhance the rental experience, including the following:

• Getaround Connect: A device installed in the car that allows for seamless initiation and tracking of rentals using the Getaround app;
• Instant Booking: A feature that enables renters to book and unlock cars instantly, without needing to wait for owner approval;
• Getaround for Business: A service that allows companies to manage their fleet of vehicles, providing employees with access to cars for business purposes.

Getaround’s unique business model and its use of technology and data have allowed the company to establish a presence in numerous cities and expand its user base.

How Getaround makes money

The company generates revenue through several fundamental sources:

Rental Fees

When users rent a car through Getaround, they pay a rental fee based on the duration of the rental and the type of vehicle selected. This fee includes the cost of insurance coverage, maintenance, and 24/7 roadside assistance. Getaround takes a percentage of the rental fee as its service fee, the company’s primary revenue source.

Getaround Connect™

Getaround Connect™ is a hardware device installed in rented vehicles to enable keyless entry and remote unlocking via the Getaround mobile app. Car owners are responsible for installing the device and can charge renters a one-time fee for its use. Getaround receives a subscription fee from drivers for each car equipped with the device.

Partnerships and Integrations

Getaround has partnerships and integrations with various companies and platforms to expand its reach and provide additional value to its users. These partnerships may involve referral programs or integrations with ride-hailing services, allowing drivers to easily rent a car through Getaround and use it for their ride-sharing activities. Getaround earns revenue through these partnerships and collaborations.

Getaround Business Model Canvas

The getaround Business Model can be explained in the following business model canvas:

Getaround Customer Segments

Getaround’s customer segment consists of the following:

• Car Owners: Car owners comprise a significant portion of Getaround’s customer segment. These individuals own vehicles and want to earn extra income by renting them out when they are not in use. Getaround provides these car owners a platform to list and manage their vehicles, connect with potential renters, and earn money through car sharing. Car owners can set their own rental price and availability, and Getaround takes care of insurance coverage and other logistics;

• Car Renters: Car renters are another vital customer segment for Getaround. These individuals need access to a vehicle for a short period, whether running errands, going on a road trip, or attending an event. Getaround allows renters to search for available cars in their area, compare prices and vehicle types, and make reservations directly through the platform. Renters can choose the duration of their rental and pick up and return the car at convenient locations;

• Businesses and Organizations: Getaround also caters to companies and organizations that need access to a fleet of vehicles for their operations. These can include delivery companies, ride-sharing services, or event organizers. By partnering with Getaround, these businesses can unlock the benefits of shared mobility, such as cost savings, flexibility, and reduced environmental impact;

• Insurance Partners: Insurance companies play a crucial role in Getaround’s business model. Getaround works with insurance partners to provide comprehensive insurance coverage for car owners and renters during the rental period. This gives car owners peace of mind, knowing that their vehicles are protected, and reassures renters that they are covered in case of any damages or accidents.

By addressing the needs of these customer segments, Getaround creates a dynamic ecosystem where car owners can generate income, renters can access convenient and affordable transportation options, businesses can optimize their operations, and cities can promote sustainable mobility solutions.

Getaround Value Propositions

Getaround’s value propositions consist of:

• For Car Owners: Getaround’s value proposition for car owners is allowing them to monetize their vehicles when they’re not in use. By listing their cars on the platform, car owners can earn extra income and offset the costs of car ownership. Getaround covers insurance coverage, ensuring the vehicle is protected during the rental period. Furthermore, Getaround’s user-friendly platform and extensive network of renters make it easy for car owners to connect with potential renters and manage their rentals efficiently;

• For Car Renters: Getaround’s value proposition for car renters is convenient and flexible access to a wide range of vehicles for short-term use. Renters can easily search for available cars in their area, compare prices and vehicle types, and make reservations directly through the platform. Getaround’s seamless booking process and convenient pick-up and drop-off locations make renting a car hassle-free. Additionally, Getaround ensures that all cars on the platform are well-maintained and reliable, providing renters with a quality experience;

• For Businesses and Organizations: Getaround’s value proposition for businesses and organizations is access to a fleet of vehicles without the need for ownership or long-term commitments. By partnering with Getaround, these entities can benefit from shared mobility’s flexibility and cost savings. They can quickly scale their operations by renting vehicles as needed and optimizing their fleet utilization. Getaround’s platform offers a streamlined process for managing multiple rentals and provides businesses with the necessary tools and support for efficient fleet management;

• For Insurance Partners: Getaround’s value proposition for insurance partners is the opportunity to collaborate on providing comprehensive insurance coverage for both car owners and renters. By working with Getaround, insurance partners can tap into a new market segment and offer specialized insurance products tailored to shared mobility needs.

Through these value propositions, Getaround creates a win-win situation for its customer segments.

Getaround Channels

Getaround’s channels consist of:

• Online platform: Getaround operates through an online platform, allowing users to browse available cars, book rentals, and manage their reservations;

• Mobile application: Getaround has a user-friendly mobile application that enables customers to find and rent cars conveniently from their mobile devices;

• Partnerships: Getaround has established strategic partnerships with various organizations, such as car rental companies, hotels, and airports, to expand its reach and make car sharing more easily accessible to potential customers;

• Referral program: Getaround has a referral program that incentivizes current users to refer new users, spreading awareness and driving customer acquisition.

Getaround Customer Relationships

Getaround’s customer relationships consist of:

• User support: Getaround provides customer support through various channels, including email, phone, and chat, to assist users with any inquiries or issues they may have;

• Community engagement: Getaround fosters a sense of community among its users through features like user reviews, ratings, and social media engagement, creating trust and encouraging repeat usage;

• Trust and safety measures: Getaround emphasizes the importance of safety by implementing verification processes for both car owners and renters. This builds trust among users and ensures a secure rental experience.

Getaround Revenue Streams

Getaround’s revenue streams consist of:

• Rental fees
• Getaround Connect™
• Partnerships and Integrations

Getaround Key Resources

Getaround’s key resources consist of:

• Car fleet: Getaround’s primary asset is its extensive fleet of cars contributed by individual car owners. These cars are available for rent through the platform;

• Technology infrastructure: Getaround relies heavily on its online platform and mobile application, which require ongoing development and maintenance;

• User base: The size and engagement of Getaround’s user base are critical resources for the company’s success. A large user base attracts more car owners and potential renters;

• Partnerships: Getaround’s strategic alliances and partnerships with ride-hailing platforms, car rental companies, hotels, and airports act as a valuable resource to extend its reach and attract new customers;

• Experienced team: A skilled and knowledgeable team is crucial for Getaround to provide excellent customer service, manage operations effectively, and drive growth.

Getaround Key Activities

Getaround’s key activities consist of:

• Building and maintaining an online marketplace platform for peer-to-peer car-sharing
• Developing and implementing innovative technology for vehicle connectivity and tracking
• Marketing and advertising campaigns
• Insurance coverage and claims management
• Customer support services
• User background checks and verification

Getaround Key Partners

Getaround’s key partners consist of:

• Vehicle manufacturers and dealerships
• Insurance companies
• Technology providers
• Marketing agencies
• Local communities and governments
• Financial institutions

Getaround Cost Structure

Getaround’s cost structure consists of:

• Technology development and maintenance
• Marketing and advertising expenses
• Insurance premiums and claims processing
• Customer support and operations
• Legal and regulatory compliance
• Background checks and verification
• Administrative and overhead costs

Getaround Competitors

• Zipcar: Zipcar is one of the major competitors of Getaround in the car-sharing industry. It operates a similar business model, allowing users to rent cars on-demand for short periods. However, Zipcar primarily operates through designated parking spots, while Getaround uses a peer-to-peer model, enabling car owners to rent out their personal vehicles;

• Turo: Turo is another significant competitor to Getaround. Like Getaround, Turo enables car owners to rent their vehicles to others. However, Turo focuses more on luxury and high-end cars, while Getaround offers a broader range of vehicles. Turo also differs in that it typically operates with longer rental durations;

• ShareNow (formerly Car2Go): ShareNow is a car-sharing service competing with Getaround. Unlike Getaround, ShareNow offers one-way rentals, allowing users to pick up a car at one location and drop it off at another. ShareNow primarily operates with a fleet of company-owned vehicles, while Getaround relies on individual car owners;

• Enterprise CarShare: Enterprise CarShare is a division of Enterprise Rent-A-Car and competes with Getaround in the car-sharing industry. Similar to Zipcar, Enterprise CarShare primarily operates through designated parking spots. However, it also offers hourly rentals, making it a direct competitor to Getaround in some markets;

• HyreCar: HyreCar is a Getaround competitor focusing specifically on rideshare drivers needing rental vehicles. Unlike Getaround, which allows owners to rent out their personal cars, HyreCar offers a platform for car owners to rent out their vehicles precisely to rideshare drivers for short-term use;

• Uber and Lyft: As prominent players in the ride-hailing industry, Uber and Lyft are strong competitors for Getaround. While they don’t allow users to rent their own vehicles, they provide accessible on-demand transportation through professionally driven vehicles. Uber and Lyft’s convenience and ease of use make them attractive alternatives to car ownership and traditional car-sharing platforms like Getaround.

Each of these competitors brings its unique value proposition and operational strategies, challenging Getaround’s market position and requiring it to differentiate itself to succeed in the competitive car-sharing industry.

Getaround SWOT Analysis

This SWOT analysis provides a comprehensive overview of Getaround’s strengths, weaknesses, opportunities, and threats. By examining these factors, we can better understand the company’s position in the car-sharing industry and its potential for future growth.

Getaround Strengths

• Strong brand recognition: Getaround is a well-known name in the car-sharing industry, which helps to attract both car owners and renters;
• Peer-to-peer car sharing model: Getaround’s unique business model allows car owners to monetize their idle cars, creating a large and diverse pool of vehicles available for renters;
• User-friendly mobile platform: Getaround offers an intuitive and user-friendly mobile app, making it easy for users to find and book a car, increasing convenience and customer satisfaction;
• Seamless integration with car technology: Getaround uses a proprietary device, Getaround Connect, allowing renters to unlock and start Getaround cars using their smartphones quickly.

Getaround Weaknesses

• Limited geographic availability: Getaround is currently available in selected cities only, restricting its market reach and potential growth;
• Dependent on car owners: Getaround relies on car owners to make their vehicles available on the platform, which can be a potential limitation if there is insufficient supply;
• Pricing variability: The pricing for renting a car on Getaround is set by car owners, leading to potential inconsistencies and fluctuations in rental rates.

Getaround Opportunities

• Market expansion: Getaround has the opportunity to expand its services to new cities and countries, capturing a larger market share in the car-sharing industry;
• Partnerships with transport companies: Collaborating with transportation companies or ride-hailing platforms can enable Getaround to reach a broader user base and increase its visibility;
• Integration with smart city initiatives: As cities focus more on sustainable transportation solutions, Getaround can position itself as a critical player in the sharing economy and participate in smart city initiatives.

Getaround Threats

• Competition from established rental companies: Traditional car rental firms launching their own car-sharing services or diversifying their business models pose a threat to Getaround’s market share;
• Regulatory challenges: Changing regulations and restrictions on car-sharing services in certain cities can hinder Getaround’s growth and expansion plans;
• Economic downturns and fluctuations: During economic downturns, individuals may give up their car ownership entirely, reducing the demand for Getaround’s services. Additionally, fluctuations in fuel prices and insurance costs can impact the platform’s profitability.

Conclusion

Getaround’s innovative business model has revolutionized how people think about car ownership and rental. The company has created a convenient and cost-effective solution that benefits both parties by using technology to connect car owners and renters.

Their peer-to-peer car-sharing platform promotes sustainability by reducing the number of cars on the road and provides an additional income stream for car owners.

With its strong market presence and continuous expansion, Getaround is poised to continue disrupting the traditional car rental industry and shaping the future of transportation.