Car-sharing start-up Turo raises $250m from US investing giant IAC
Car-sharing start-up Turo has raised $250m (£200m) from the US investor behind internet companies including Match Group.
The deal gives Turo, which lets car owners rent out their cars on-demand to travellers or tourists, a valuation in excess of $1bn.
It is the latest major investment for New York-listed IAC, which owns major stakes in high-profile internet and media companies, including Match.com and The Daily Beast.
Founded in 2010 in Boston and headquartered in San Francisco, Turo has expanded to more than 10 million users of its car-sharing service with 400,000 listed vehicles.
The UK has become one of its fastest-growing markets, a Turo spokesman said. Since launching in September last year, it now has around 30,000 users and 6,000 rental cars on its service.
It brings Turo's total raised to more than $470m, a war chest the company hopes can be used to battle incumbents car rental companies, a market dominated by the big three of Avis, Hertz and Enterprise.
Turo has positioned itself as a “car sharing”, aiming to win business on the back of the success of the likes of Airbnb, which has led to a boom in flat sharing for holiday makers.
The company says it makes its US users on average around $500 per month for offering their cars out for short-term rents when they are not being used. Its car letting is underwritten by around £20m insurance cover in the UK.
