Why Getaround Shares Are Jumping Today

Getaround, Inc. GETR shares are trading higher in the premarket session on Thursday. 

Getaround said it is planning to restructure its workforce and operations to reduce costs and align with the globalization of the carsharing business.

This new plan includes a workforce reduction, effective immediately, that impacts approximately 30% of the Company’s North American staff. 

Getaround anticipates that this cost-reduction program will result in savings of approximately $7 million on an annualized run-rate basis. 

The company expects to incur up to $1 million in restructuring costs in connection with the workforce reductions.

To boost growth, the company expanded to gig carsharing, enabling gig workers across the U.S. to rent cars to drive for services like Uber Technologies, Inc. UBER and DoorDash, Inc. DASH.

“We’ve made significant progress over the past year, including steady improvements in revenue growth and unit economics, as well as in overall adjusted EBITDA profile and operating efficiency,” said Sam Zaid, Getaround CEO.

In the third quarter of 2023 (reported in December) the firm delivered total revenues of $23.8 million, increasing 42% year-over-year.

The company exited the quarter ended September 30 with cash and equivalents worth $25.8 million.

Last month, the company secured a new debt facility with Mudrick Capital Management for up to $20 million.

The company says the funding will support Getaround’s 2024 operating plan, with an initial draw of $5 million.

For the fiscal year ending December 31, 2023, the company expects gross booking value to be in the range of $200 million to $205 million and adjusted EBITDA loss in the range of $(68) million to $(70) million.

Price Action: GETR shares are trading higher by 6.40% to $0.2811 premarket on the last check Thursday.