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

turo, the peer-to-peer car-sharing startup, has released its filing to become a publicly traded company in the united states, a process the company began confidentially in august.

the s-1 document filed on monday with the us. uu. the stock and exchange commission does not include terms for your offer.

Reading: Turo valuation

turo, which was founded in 2010 and has been compared to airbnb for cars, allows private car owners to rent out their vehicles through the startup’s website or app. The company has 85,000 active hosts and 160,000 active vehicle listings in more than 7,500 cities as of September 30, 2021. Car owners have the opportunity to offset the cost of ownership and users benefit from affordable rentals at short term at a time when car rental prices are rising due to pandemic-induced supply chain issues. Challenges in the traditional car rental industry have certainly allowed Turo to gain some market share, despite stiff competition, but that popularity has come at a cost at times, a reading of the market factors portion shows. s-1 risk.

quick financial breakdown

First let’s take a look at finances.

in 2020, turo generated net income of $149.9 million in 2020, a growth of 6% from the previous year, according to s-1. net loss was $97.1 million in 2020, a slight improvement from the $98.6 million net loss in 2019.

turo points to a couple of drivers of its revenue growth, in particular, a digital tool called turo’s risk score. Launched in April 2020, this feature dynamically adjusts the fees Turo charges guests to complete a reservation. turo said this tool, along with hosts increasing the prices of vehicles they charge guests, helped increase their net income.

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In 2021, sales and losses skyrocketed.

turo says it generated $330.5 million in net income in the first nine months of 2021, a whopping 207% increase from $107.8 million in the same period in 2020. Its net loss also increased. turo reported a net loss of $129.3 million for the nine months ended September 30, 2021, compared to $51.7 million for the same period in 2020.

the reason? turo notes in its s-1 that revenue increased as the number of days booked increased along with the gross booking value per day.

scanning the s-1, it also appears that turo tried to do more with less in 2020 and has since turned the financial spigot back on this year. the company restricted its expenses in 2020 and operating expenses decreased from $133.9 million in 2019 to $95.8 million in 2020.

The first nine months of 2021 tell a different story. the company’s operating expenses in the first nine months of the year were $124.01 million compared to $71.6 million during the same period last year. Turo also says it reached an adjusted ebitda, a modified profitability metric, of $69.8 million in the first nine months of 2021. It did so despite that $129 million net loss due to a $174.7 change. million at the fair value of redeemable convertible preferred stock. liability guarantee.

risk factors

Risk factors facing the company include the obvious “what if people don’t use turo?” and “we face competition” from similar apps and traditional car rental companies. but some others stand out.

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For example, Turo points out that the covid-19 pandemic added volatility to his business. The company was forced to lay off staff and even closed its operations in Germany in 2020, only for business to return to “exceed pre-Covid levels.”

The car rental app notes that you may face liability for the criminal activities of your hosts. There don’t appear to be any lawsuits or fines, but in August of last year, it was discovered that turo and other peer-to-peer rental apps had been used by criminals for human trafficking and other crimes, a trend that the us has seen. uu. supports customs and border protection is a growing trend near the border.

turo is also responsible for lawsuits from cities, or more specifically airport authorities, that would require the long-time startup to obtain car rental permits. and on this ground Turo has in fact been sued and countersued. There have been four lawsuits related to the use of the airport and three of them, including one brought by Turo against the city of Los Angeles, have yet to be resolved.

opportunities and growth

despite the potential risks, turo estimates its current useful addressable market to be $146 billion and its total addressable market to be $230 billion.

“we estimate that our $230bn tam includes $134bn in north america, $65bn in europe, and $31bn in the rest of the world (consisting of select countries where we believe we have a presence of medium to long term). long-term opportunity to onboard hosts),” according to the presentation.

In particular, the company appears poised to expand its operations within its US headquarters. uu. market and internationally. is also set to make some strategic acquisitions and partnerships “to offer our hosts and guests services and features that we currently do not offer internally.”

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