UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.05 | Costs Associated with Exit or Disposal Activities. |
On February 1, 2023, the Board of Directors of Getaround, Inc. (the “Company”) approved a restructuring plan to streamline operations and reduce costs to achieve a leaner path to profitability. The Company expects to reduce global headcount by approximately 10%. The Company also anticipates significantly reducing costs associated with external consultants, professional services providers and vendors for certain software and tools. The Company has also initiated a new suite of risk management tools to improve revenue yield and reduce the cost of risk during trips booked on the Getaround marketplace. The Company estimates that it will incur total costs in connection with the restructuring of approximately $1.4 million, substantially all of which is expected to be related to severance and benefits costs. These changes together are estimated to result in cost savings of between $25 million and $30 million on an annualized run-rate basis and these actions are expected to be completed in calendar year 2023.
| Item 7.01 | Regulation FD Disclosure. |
On February 2, 2023, the Company issued a press release and published a blog post to the Company’s website announcing the restructuring plan described above. Copies of the press release and the blog post are furnished herewith as Exhibits 99.1 and 99.2, respectively.
The foregoing description and the other information provided pursuant to this Item 7.01, including Exhibits 99.1 and 99.2, is “furnished” and shall not be deemed “filed” with the Securities and Exchange Commission (the “SEC”) or incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in any such filings.
Cautionary Note Regarding Forward Looking Statements
This Current Report on Form 8-K includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events, such as statements related to the expected benefits of and timing of completion of the restructuring plan, and the expected costs and charges associated therewith. In some cases, you can identify forward-looking statements by terminology such as “intends,” “plans,” and “will,” or the negative of these terms or variations of them or similar terminology. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, many of which are beyond our control, including the risk that the restructuring costs and charges may be greater than anticipated; the risk that the Company’s restructuring efforts may adversely affect its ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; the risk that the restructuring efforts may negatively impact the Company’s business operations and reputation with or ability to serve hosts and guests; the risk that the restructuring efforts may not generate their intended benefits to the extent or as quickly as anticipated; and the other factors under the heading “Risk Factors” in our Current Report on Form 8-K filed with the SEC on December 14, 2022, and in other filings that the Company has made and may make with the SEC in the future. All of the forward-looking statements made in this Current Report on Form 8-K are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our business or operations. Such statements are not intended to be a guarantee of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this Current Report on Form 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit |
Description | |
| 99.1 | Press release, dated February 2, 2023. | |
| 99.2 | Blog post, dated February 2, 2023. | |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GETAROUND, INC. | ||||||
| Date: February 2, 2023 | /s/ Spencer Jackson | |||||
| Name: Spencer Jackson | ||||||
| Title: General Counsel and Secretary | ||||||
Exhibit 99.1
Getaround Announces Restructuring Plan to
Reduce Costs and Streamline Operations
Proactive actions will optimize Getaround’s cost structure in response to near-term macroeconomic uncertainty, while maintaining focus on innovation and sustainable, profitable growth
Estimates cost savings of $25 million - $30 million on annualized run-rate basis
SAN FRANCISCO, February 2, 2023 – Getaround (NYSE: GETR) (“Getaround’’ or “the Company”), the world’s first connected carsharing marketplace, today announced the Company will streamline operations and reduce costs to achieve a leaner path to profitability. These changes also include a workforce reduction, effective immediately, that impacts approximately 10% of the Company’s current staff. The restructuring plan also includes significant reductions to other operating expenses, including reducing the Company’s contract workforce, and outside professional services. This revised global business strategy is intended to fortify the Company’s path to achieve sustainable profitability and long-term growth. Together, these reductions to the Company’s operating expenses are estimated to result in cost savings of between $25 and $30 million on an annualized run-rate basis.
“In response to an uncertain near-term macroeconomic outlook, which has hit technology companies particularly hard, Getaround has made the decision to streamline its operations,” said Sam Zaid, Getaround CEO. “These proactive changes include a difficult, but necessary, reduction in our North American workforce. Through these changes, we will maintain and prioritize Getaround’s spirit of innovation and long-term focus on profitably growing our global marketplace at a measured and efficient pace, while, at the same time, optimize the Company’s underlying cost structure. Getaround continues to benefit from strong demand in the U.S. and Europe, as we continue to lead the digital carsharing transformation.”
Zaid continued, “While this was a necessary step to maintain financial health and the long-term success of Getaround, with much sadness, I want to say thank you to our departing colleagues for your contributions, the energy you have brought to the team, and the impact you have had building Getaround into a global marketplace.”
About Getaround
Offering a 100% digital experience, Getaround makes sharing cars and trucks simple through its proprietary cloud and
in-car Connect® technology. The company’s mission is to empower people to carshare everywhere and shift away from car ownership
through instant and convenient access to desirable, affordable, and safe cars from entrepreneurial hosts. Getaround’s on-
demand technology enables a contactless experience — no waiting in line at a car rental facility, manually completing paperwork, or meeting anyone to collect or drop off car keys. Getaround aims to utilize its peer-to-peer marketplace to help solve some of the most pressing challenges facing the world today, including environmental sustainability and access to economic opportunity. Launched in 2011, Getaround is available today in more than 1,000 cities across the United States and Europe. For more information, please visit https://www.getaround.com/.
Forward Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally relate to future events, such as statements related to the expected benefits of and timing of completion of the restructuring plan, and the expected costs and charges associated therewith. In some cases, you can identify forward-looking statements by terminology such as “intends,” “plans,” and “will,” or the negative of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, many of which are beyond our control, including the risk that the restructuring costs and charges may be greater than anticipated; the risk that the Company’s restructuring efforts may adversely affect its ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; the risk that the restructuring efforts may negatively impact the Company’s business operations and reputation with or ability to serve hosts and guests; the risk that the restructuring efforts may not generate their intended benefits to the extent or as quickly as anticipated; and the other factors under the heading “Risk Factors” in our Current Report on Form 8-K filed with the SEC on December 14, 2022, and in other filings that the Company has made and may make with the SEC in the future. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our business or operations. Such statements are not intended to be a guarantee of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
###
Contact:
Shyna Deepak
press@getaround.com
Exhibit 99.2
TITLE: Charting a Leaner Path to Profitability
By Sam Zaid
Team, we’ve had a lot to celebrate recently and I’ve truly been inspired by what we achieved in 2022, despite an extremely challenging market backdrop. When I rejoined as CEO a year ago, I felt so much change was needed and I wasn’t sure we could do it all… watching you all rally and achieve so many objectives reminded me that beating the odds is in Getaround DNA, and has been since we founded the company over 10 years ago.
So it’s with a heavy heart that I’m writing this post to share the news that we’ve made the difficult decision to reduce our global workforce by approximately 10%. These reductions are exclusively affecting North American teams, across all departments. Today, we are saying goodbye to many talented Getarounders.
Why we’re making this change
Getaround became a public company almost two months ago in a very challenging time — the world around us is continuing to deal with the aftermath of the COVID pandemic, high inflation, still rising interest rates, a volatile stock market, and war abroad. While we are a rare company to successfully raise a substantial amount of money in the public markets last year, it took longer and cost more than we expected. We raised significant capital in absolute terms but at the low end of the possible range of outcomes.
Over the past month, as I’ve worked with the executive team on plans for this year and next, it became clear that we had to rethink our strategy and plans to ensure that we have the resources to take advantage of the substantial opportunity still ahead of us. We remain focused on building the world’s leading digital carsharing marketplace, continuing to lean into the Internet of Things and Connected Cars. But, simply put, we need to take a leaner path to profitability than we had anticipated, which requires us to reduce costs, not only through this layoff but also by cutting back significantly on the amount we spend on operational expenses.
I take full responsibility for the decisions that led us here, and I’m sorry for that. I get that everyone will process this in their own way, and I understand the disappointment and disruption this will cause for each of you, especially for those Getarounders who will be leaving the company. This was a hard decision but a necessary one for the long-term success of Getaround.
Supporting our departing teammates
We are committed to providing support and resources to those who will be leaving the company today. That starts with the following:
| • | We will pay those employees up to 12 weeks of severance, and not less than 6 weeks, depending on their tenure with Getaround |
| • | In addition, those employees will continue to receive full benefits through the end of February, and we will pay for two additional months of COBRA coverage should they elect it |
For all those that will be moving on, we want to help make their transition an easy and smooth one as best we can. We’re offering affected employees to keep Getaround-issued laptops. Our departing teammates will also be given the opportunity to add their contact information to a spreadsheet that we’ll make available to the company to share with those in their networks looking for talent. They’ll also be able to request promo code for $500 in Getaround driving credit to help them get around as they transition and seek new opportunities.
Where we go from here
While the changes today are painful for all of us, I am confident that we’re heading in the right direction. We have a sharpened singular focus on achieving our mission, profitably. We’re creating a truly global and digital marketplace built on our own proprietary connected car technology, and globalizing our organization through an ambitious global strategy — that will result in synergies both inside the company and a more seamless experience for our guests and hosts as they travel to the more than 1,000 cities we serve around the world.
In the past week, I’ve also listened to customers share their stories — from those who rely on Getaround for mobility to our go-getter hosts who are now entrepreneurs building on the Getaround marketplace. It’s astonishing to see how they rely on Getaround. It’s why we exist. Even more so in moments threatened by economic uncertainty.
These are challenging times in the world but it’s in our DNA to beat the odds and to help our customers do the same. And I look forward to working with you on that.
- Sam
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