An auto industry-related company pumped $24 million in funding into San Francisco-based ridesharing service Getaround “to truly change the way people own cars by expanding access to peer-to-peer car-sharing and lower barriers to participation,” according to a joint statement from Getaround and lead investor Cox Automotive.
Cox Automotive, which provides vehicle remarketing and other services to car dealers and consumers, also owns AutoTrader, Kelly Blue Book and Manheim Auctions.
Also participating in the round, which reportedly values Getaround at $200 million, were existing investors Menlo Ventures and SOS Ventures, as well as Triangle Peak Partners, bringing Getaround’s total funding to $40 million.
Getaround states that it plans to use the funding to expand from San Francisco, San Diego, Chicago and Austin to Oakland, Portland and Washington, D.C., the company states.
“Our focus has shifted to an entirely on-demand sharing experience and we have seen tremendous traction with this model,” says Getaround founder Jessica Scorpio. “The market shows this is fundamental in providing a true alternative to car ownership and with the help of Cox Automotive, we’re excited to bring our service to all major U.S. cities in the next year.”
With just $40 million in the bank, don’t expect Getaround to make good on its pledge to launch in “all major U.S. cities in the next year,” but this latest funding round, in tandem with other fundings in this space, shows that ground transportation and ridesharing is the hottest thing going at the moment.