Getaround Gets It: $3.4 million in Funding

getaround logoGetaround, the peer-to-peer car-sharing service we profiled here back in May, has achieved another step towards legitimacy: financial backing from several investors including the founders of Netflix, Powerset, and WordPress. According to a recent article on TechCrunch, a technology media company that profiles startups, new internet products, and breaking tech news, initial investor attention was garnered after Getaround was awarded the “hottest next generation startup” at the TechCrunch Disrupt event in New York this year.

But the award wasn’t the only thing: Getaround just seems to make financial sense.  By taking a 40% transaction fee for each rental, Getaround is able to cover roadside assistance, insurance and support.  And, for the individual, top renters are grossing $6,000-$10,000 per year, with the average monthly revenue per car at $340.  For those renting, some cars go for up to $75 per hour (a Tesla Roadster), but can be as cheap as $5-$6 per hour (even for a Nissan Xterra).  The daily rates are comparable to traditional rental cars and without the hassle of getting to a rental car lot and returning the car within their service hours.

This round of funding provides yet another vote of confidence in the peer-to-peer rental market.  Getaround joins RelayRides (a competitor), AirBnb, and HomeAway as peer-to-peer services who have recently received hefty financial backing.

- Terra Curtis