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Getaround seeks sale: Bloomberg
Posted on Tuesday, 24 March 2020 06:41
Getaround told Bloomberg in an email it is “evaluating the appropriate steps to manage” the unprecedented pandemic that has led to plummeting demand for the US car-sharing app valued at over USD 1.00 billion.
The spokesperson noted that “like many other businesses, we are dealing with the impacts of the Covid-19 outbreak, both in the US and Europe”.
It was added that this “includes the support of our investors”.
Bloomberg contacted Getaround for comment after sources told the news provider the peer-to-peer car-sharing platform is actively looking for a buyer.
According to the people with knowledge of the situation, the SoftBank-backed app is struggling for cash and if it cannot obtain an equity infusion or find a buyer then it may file for Chapter 11.
Last week, the US announced businesses in the North American country needed to close their doors to try and contain the spread of the virus.
Getaround noted it intended to carry on as normal, though it would waive cancellation fees and quarantine cars that had been in contact with the coronavirus.
In the statement, the spokesperson told Bloomberg: “Our service remains essential to our communities by providing flexible and safe access to transportation, and we are working to ensure it continues to be available during this time.”
Getaround has about 5.00 million users accessing services operating in more than 300 cities and, according to the news provider, said in January that its revenue was growing sixfold.
Investors in the company include the likes of Menlo Ventures, Braemar Energy Ventures, Asset Plus, Triangle Peak Partners, SPARX Group, Toyota Motor, Cox Automotive, and SAIC Capital.
News of Getaround follows on from a Bloomberg report last week suggesting another SoftBank-backed group, OneWeb, is considering bankruptcy.
Zephyr, the M&A database published by Bureau van Dijk, shows 1,078 minority stake deals with private equity, venture capital or development capital investment targeting the global data processing, hosting and related services sector have been announced in 2020 to date.
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