Turo Plans to Go Public

Peer-to-peer car rental company Turo plans go public in 2021, according to a Jan. 1 interview in the Wall Street Journal with Turo CEO Andre Haddad.

According to the Journal report, Haddad is undecided on whether to raise capital through a traditional or take the special-purpose acquisition (SPAC) route. A SPAC is a corporation formed for the sole purpose of raising capital from investors, with the money then used to acquire a privately held company to take it public in an IPO.

SPACs flourished in 2020 and were a popular go-public option for transportation tech companies such as ChargePointXL Fleet, and Canoo.

Turo is forecasted to earn a record $153 million in revenues for 2020, according to the report, even as the coronavirus pandemic devastated travel overall. The company cut 30% of its workforce in March and slashed its marketing costs to conserve cash.

The company reported its first profitable quarter in 2020, according to the report. Haddad expects the company to turn a profit in 2022.

Meanwhile, rival Getaround had cut one-fourth of its staff in January — before the coronavirus — and then issued another 25% cut in March. Yet the company was able to raise $140 million in October.

Source: Auto Rental News – Turo Plans to Go Public