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Disruptive Car-Share Company Turo Just Filed For IPO

The peer-to-peer car-sharing platform, Turo, is kicking off 2022 with the company recently filing its initial public offering with the SEC.

Turo is the largest peer-to-peer car-sharing marketplace in the world with 450,000 cars available in more than 5,500 cities for customers.

It’s got something for everyone; a campervan for that cross country road trip, a pickup for that off-road experience, even a sports car for that one-off luxurious getaway. 

The Airbnb for car rental.

At first glance, you might think Turo is Uber-esque, but it’s really a competitor trying to steal the tourist market. In fact, it tackles two of Uber’s biggest problems — safety and reliability — putting control back in the customer’s hands.

What Turo is more like, is Airbnb. Airbnb doesn’t own any homes. It just owns the platform, network, and gives users the solutions to put their homes to work for them. That’s what Turo is doing, just with vehicles. Users list their cars and start earning money.

Not only is the company looking at travel rental options, but it’s also giving consumers the option to trial cars before a big purchase. Sure, you can always do a test drive, but they might prefer a longer trial before throwing money at a fresh set of wheels. 

Turo’s financials 

In the first 9 months of 2021, Turo reported revenue of $331 million, a whopping 207% year-over-year increase. How much of this was just due to lackluster demand in 2020 is also uncertain — Hertz nearly went bankrupt that year — and industry revenues reportedly fell 27%. With that in mind, net losses more than doubled to $129 million in the same period, so Turo will need to tighten the purse strings.

There’s no valuation just yet but with the disruptor tagline, investors can expect to pay a premium. It’s definitely a high-risk venture, but with a $230 billion total addressable market, it could be a big one for 2022. 

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