Turo heads to Germany

Date: 6 SEPT 2017posted by Car Rentaledited by WinX

Turo announced on Wednesday a $92 million funding round led by Daimler which included a deal to take over the automaker's German rental service, Croove. The series D funding round brought Turo's total funding to $193 million and brought on new investors such as South Korean conglomerate SK and Liberty Mutual Strategic Ventures as well as existing investors Kleiner Perkins, GV and Shasta Ventures. Turo's Croove deal allows the tech start up to expand into Europe, where car and gas prices are considerably higher than in the United States. Company officials also said new investor SK will be exploring options for the company to expand into Asia. For those unfamiliar, Turo is the essentially car version of Airbnb. It is a peer-to-peer car rental service that match owners with renters in selected cities and price ranges, all within an app. Currently it is operating with 170,000 privately owned vehicles on its service. It currently operates in every state except New York due to group-coverage insurance laws.

Turo currently boasts around 4 million members. The company is going through a growth spurt where they were able to triple the number of vehicles and quadruple their members within two years. "We want more and more people to realize that they have at their disposal a platform that can change the economics of car ownership," CEO Andre Haddad said. "With 1.1 billion cars in the world, we're just scratching the surface." Turo's rise is exactly at the same time auto manufacturers are looking towards hedging their bets against ride-hailing and ride-sharing which is a major obstacle towards new car ownership. According to AAA, car ownership costs an average $9000 a year for an asset that is used for less than 10 percent of the time. Turo statistics show that an owner of a new Honda Civic can cover a $283 monthly finance payment with 11 days of renting, while a new Tesla Model S owner can cover their $1020 payments in 7 days. Turo users that list their vehicles need to present a car in good condition and can opt between having the car picked up or offering delivery. Renters must return the vehicle in such said found condition and full of gas. Certain fees may apply if the vehicle is deemed to need cleaning or is late.

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