As most countries up their games regarding climate change issues, ride-sharing platforms are expected to witness a silent but meteoric rise. This comes as automobile congestion hovers near all-time highs, with post-pandemic pent-up demand resulting in more traffic across urban and suburban regions alike.
Passenger cars emitted 3.2 million metric tons of carbon dioxide as of 2019, though the number fell by nearly 6% in 2020 because of the COVID-19 pandemic. Even 100 million fewer cars around the world could result in 1 trillion pounds of carbon dioxide emissions averted.
As governments around the globe look for ways to reduce their carbon footprint, incentivizing the use of ridesharing platforms could be one of the ways to mitigate automobile congestion and overall pollution levels.
Even though Uber and Lyft predominantly control the ridesharing sector in the West, Turo, often cited as the Airbnb for cars, is poised to disrupt this space in the near term.
Slashed IPO Plans But Potential Revival
In January 2022, Turo Inc. filed for its initial public offering (IPO) on the Nasdaq Stock Exchange, but it has yet to pull the trigger. The company's IPO plans remained stalled for months and were ultimately slashed, presumably because of the 2022 tech rout and poor performance of its biggest competitor, Getaround.
Nonetheless, the company plans to restart its IPO next month, according to insiders. But the hawkish monetary outlook, coupled with the rampant market fluctuations, might result in further delays.
While several startups have gone public over the past few months, their performance in the upcoming months could reflect the path for these early-stage companies. Grocery delivery-focused tech firm Instacart made its public debut last week but has since slumped by nearly 11% over the past five days.
Turo is primarily backed by IAC Inc., August Capital, Canaan Partners, G Squared, Shasta Ventures and GV Management Co. The car rental company was valued at $1.2 billion as of 2019 after raising approximately $500 million in equity funding since its inception almost a decade earlier in 2009.
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In 2022, Turo recorded revenue of $746.59 million, a 59% increase compared to the $469.05 million it earned in 2021. The platform's active vehicle listings (inventory) rose by 67% year-over-year to 320,000 as of last year.
The rise in net revenue for the fiscal year concluding on Dec. 31, 2022, can be attributed to the growth in total booked days by Turo platform guests, after accounting for canceled days during that timeframe. This increase stems from sustained travel demand, coupled with an expansion of Turo's supply and the addition of new guests to the platform.
After reporting generally accepted accounting practices (GAAP) net losses in the ballpark of $90 million in both 2019 and 2020, Turo managed to reduce this figure to a net loss of $40.4 million in 2021. In 2022, the company achieved a notably positive net income of $154.66 million.
As of Dec. 31, 2022, Turo's marketplace boasted more than 160,000 active hosts and engaged with 2.9 million active guests around the globe.
While Turo took the market by surprise by generating a profit last year, the company anticipates rising operating expenses in the near term, which might hamper its ability to maintain profitability.
"We expect our operating expenses to increase substantially in the foreseeable future as we implement initiatives designed to grow our business, including but not limited to acquiring new hosts and guests, growing partnerships and relationships with third parties, including with insurance providers, vehicle manufacturers and online travel search engines, developing new or enhanced offerings, hiring additional employees, expanding internationally and expanding our infrastructure. These efforts may prove more expensive than we currently anticipate, and we may not succeed in increasing our revenue sufficiently, or at all, to offset these higher expenses," Turo stated in its updated S-1 filing.
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This article Turo's IPO Reboot: Ride-Sharing Platform Aims For Fall Debut originally appeared on Benzinga.com
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