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Kyte, which billed itself as the ‘best competitor to Hertz,’ shuts down
Kyte, a rental car startup positioned as a competitor to Hertz, has shut down less than a year after major layoffs and exiting most U.S. cities. The company failed to secure financing after defaulting on loans, leading to the liquidation of its vehicle fleet. Kyte transferred its customer list to Turo, but many users are struggling to obtain refunds. Founded in 2019, Kyte raised over $300 million but couldn't achieve profit.
Key points
- Kyte made layoffs and exited most U.S. cities before shutting down.
- The company sold its customer list to Turo as it entered receivership.
- Kyte defaulted on loans, causing its main lender to liquidate its vehicle fleet.
- Efforts to secure financing failed, prompting the board to wind down operations.
- Pre-booked customers are having difficulty obtaining refunds, despite some using chargebacks.
Why it matters
- The demise of Kyte echoes wider industry troubles as many startups in the vehicle rental space face challenges.
- Similar to Kyte, Getaround ceased U.S. operations in favor of focusing on Europe.
- As of 2024, other rental services, like Autonomy, have also restructured or pivoted.
Kyte's collapse reflects broader trends of instability in the rental car market, highlighting the difficulties startups face in achieving sustainability amid economic pressures and competition.