Continuing its path to profitability, a new AI risk engine expected to yield up to 50% cost savings in insurance and claims
Expects trip contribution margin to grow to up to 60% by the end of fiscal 2023
Getaround (NYSE: GETR) (“Getaround” or “the Company”), the world's first connected carsharing marketplace, today announced Getaround TrustScore v2.0, a proprietary next-generation artificial intelligence (AI) model to improve the safety and economics of its carsharing marketplace. Preliminary results indicate a cost savings of up to 50% of claims and insurance expense — one of the Company’s largest cost centers.
Getaround TrustScore v2.0 combines machine learning with over a decade of data from trips taken on its platform to provide optimized pricing and security deposits for each carsharing trip. With Getaround TrustScore, the Company is able to more accurately price risk on trips, provide upfront transparency for what guests should expect to pay while reducing insurance costs. Getaround TrustScore anticipates that insurance and claims costs will be reduced by up to 50% using the next-generation AI system.
“We are thrilled to roll out the latest version of our Getaround TrustScore after several months of testing our new AI model — to create safer and more desirable carsharing experiences that elevate carsharing from traditional rental models and car ownership,” said Sam Zaid, CEO and Founder of Getaround. “Getaround TrustScore v2.0 enables us to further improve guest and host satisfaction, while concurrently helping to drive our bottom line with expected insurance and claim costs reductions of up to 50%. This strategic, next-generation AI model reduces costs associated with offering carsharing and unlocks increased earnings potential for our hosts and improved availability of vehicle options for guests. With TrustScore 2.0 and the recent HyreCar acquisition, Getaround continues to make smart, strategic investments to drive our path to profitability and long-term carsharing category leadership.”
Getaround recently closed on the acquisition of substantially all of the assets of HyreCar, a premier gig carsharing marketplace.
“Getaround has an image of being the pioneer in carsharing and stands out as a tech savvy company who supports their hosts. I put my first car on the platform 10 years ago and have been aggressively growing my fleet ever since,” said San Francisco-based host, Alfonso Acevedo. “By implementing the new TrustScore, Getaround is working to reduce costs, potential car damage, and overall, prevent headaches for its hosts. I’m looking forward to continuing to work with Getaround as they advance their trust and safety offerings.”
Getaround and its patented Connect® technology provide contactless, 24/7 access to shared vehicles on its platform, by enabling users to unlock the car via the Getaround app without having to wait in line or pick up keys. Individuals can instantly book the shared vehicles for any span of time, from one hour to weeks, perfect for local trips including going to the grocery store, attending a meeting, or longer excursions.
Privately owned cars are typically parked 95% of the time and are only actively being used roughly six hours per week. For the remaining 162 hours of the week, most cars stay parked and idle. Peer-to-peer carsharing platforms like Getaround mean fewer cars on the road: studies show that, on average, one carsharing vehicle replaces nine to 13 vehicles.
Offering a 100% digital experience, Getaround (NYSE: GETR) makes sharing cars and trucks simple through its proprietary cloud and in-car Connect® technology. The company empowers consumers to 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’s mission is 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/.
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 by the chief executive officer of Getaround, statements regarding expected synergies, future financial results and other benefits of the use of TrustScore v2.0. In some cases, you can identify forward-looking statements by terminology such as “anticipates,” “expects,” and “may,” 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 possibility that our use of TrustScore v2.0 will not provide the expected benefits; 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.