On January 1, 2025, a series of deadly attacks in Las Vegas and New Orleans shocked the nation, where vehicles rented from the car-rental startup Turo were used as weapons, resulting in 15 deaths and numerous injuries. In the wake of these tragic events, Turo's safety team cut their vacations short to respond to the incidents and assess the situation. The FBI has stated that the attacks appear to be unrelated, but the implications for Turo's operations are significant. [a1066650]
Founded in 2010 as RelayRides, Turo has grown to serve 3.5 million users with a fleet of 350,000 vehicles. The company employs a Turo Risk Score system to vet drivers, evaluating 50 data points since 2020 to ensure safety and reliability. Despite the recent incidents, Turo has reported strong financial performance, with $722 million in revenue for the first nine months of 2024 and a valuation exceeding $1 billion following a $528 million funding round in 2019. [a1066650]
However, the recent violent incidents have raised serious safety concerns that could impact Turo's plans for a public offering. CEO Andre Haddad is focused on rapid growth, but the challenges are mounting, especially as competitors like Getaround have recently cut 30% of their staff due to similar pressures. Turo's ability to navigate these safety issues while maintaining its growth trajectory will be closely monitored by investors and industry analysts alike. [a1066650]