Carsharing firm Turo Inc., on Monday (Aug. 9) confidentially submitted a draft Registration Statement on Form S-1 with the Securities and Exchange Commission (SEC) for a planned initial public offering (IPO) of its common stock.
As of the Monday filing, Turo hasn’t determined the number of shares to be offered or the price range for its IPO. The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions, according to the company’s announcement.
Company officials have been mulling taking Turo public for some time and have taken steps to ensure it’s in the best position whenever that happens for most of this year.
Turo CEO Andre Haddad told The Wall Street Journal in January that the startup achieved a first-time quarterly profit and expected to reach full-year profitability next year. The firm reduced its losses in the second half of 2020 to $7.2 million from $46.9 million in 2019, before interest and taxes.
In March, the company laid off more than 100 people, roughly a third of the its workforce, to reach profitability. In April, the CEO made deep cuts to expenses, looking to put by three years’ worth of cash.
Turo connects vehicle owners with drivers who want to rent vehicles by the day, week or month, and its offerings include Lamborghinis and other luxury cars. The company did well amid the pandemic as people took local trips and joyrides when they could no longer indulge in air travel. The startup competes with private car-renting marketplace Getaround.
Turo charges a percentage of the rental fees, as well as separate booking fees. The Silicon Valley company had a record $153 million in revenue in 2020. In the second half of 2021, the firm is expecting to hit more than $92 million in revenue, up 7 percent over the same period last year, according to WSJ.