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Turo scraps plans for an IPO
Turo has withdrawn its plans for an IPO after a three-year wait, reflecting a decline in growth and unfavorable market conditions. The decision follows Getaround's shutdown of U.S. operations. Despite having 150,000 active hosts and $722 million in revenue for the first nine months of 2024, Turo's performance still lags behind its 2022 peak, impacting its IPO prospects.
Key points
- Turo withdrew its IPO plans due to changing market conditions and slowed growth.
- Founded in 2010, Turo allows private car owners to rent vehicles, similar to Airbnb's model.
- The IPO was initially filed in January 2022, but conditions worsened rapidly afterward.
- Getaround, a competitor, shut down U.S. operations the day before Turo's announcement.
- Turo has 150,000 active hosts, 350,000 vehicle listings and 3.5 million active guests as of September 2024.
- Turo reported $722 million in revenue in 2024, but this is below its 2022 figure of $879.7 million.
Why it matters
- The decline in Turo's growth reflects a broader trend in the tech sector where many startups are struggling to go public.
- Market conditions for IPOs have changed since 2021, affecting numerous companies in the sharing economy.
- As of 2025, many tech companies face increased investor scrutiny and expectations for profitability.
Turo's decision to scrap its IPO highlights the challenges faced by tech companies in the evolving market landscape, signaling a cautious approach from investors amid fluctuating growth trajectories.