Turo Sacra Teardown

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Turo: The peer-to-peer platform for private car owners to rent out their vehicles

Travel Tech

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    A deep dive into Turo's financials, product, competitive environment, and market opportunities...
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        Sacra estimates that Turo generated USD 880 million in revenue in 2023, representing an 18% YoY growth from USD 747 million in 2022. The company experienced significant growth during the Covid-19 pandemic, with revenue increasing 213% in 2021 to USD 469 million.
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        As of June 2024, Turo's valuation stood at USD 1.25 billion based on its Series E funding round in 2019, which was led by IAC and other investors. This implies a revenue multiple of approximately 1.4x based on 2023 revenue.
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        Turo operates a peer-to-peer carsharing platform that enables private car owners to rent out their vehicles. The company's marketplace is available in over 7,500 cities across the US, Canada, the UK, France, and Australia, with over 350,000 active vehicles, 175,000 active hosts, and 3 million active users.
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        Turo generates revenue through a commission-based model, charging variable fees to hosts and guests for each transaction. Commission fees range from 15% to 45% based on factors such as vehicle type, rental duration, and location, with an average commission of around 25%.
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        The company faces competition from traditional car rental companies like Enterprise, Hertz, and Avis and other peer-to-peer carsharing platforms like Getaround. Turo differentiates itself by offering a wider variety of vehicles, often at lower prices, and providing more flexible pickup and drop-off options.
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        The global travel industry is on the path to revival after the steep initial decline caused by the Covid-19 pandemic. 
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        Concerns surrounding staffing shortages, health safety, and other side effects of the pandemic create demand for a new set of tech-infused travel solutions. 
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