Car-Sharing Startups Take U.S. Loans After Covid-19 Disruptions
Getaround and Turo, each once valued at more than $1 billion, accepted millions from the government in April.
Traffic travels on highway 101 in San Francisco, California.
Photographer: David Paul Morris/BloombergGetaround Inc. and Turo Inc., car-sharing companies that have been valued at more than $1 billion by private investors, said Monday that each took at least $5 million through the U.S. Paycheck Protection Program, a government program intended to help small businesses ride out the disruptions caused by the coronavirus pandemic.
The San Francisco-based startups are among the most valuable technology companies to say they applied for and kept financial aid from the loan program after Covid-19 levied a severe toll on the transportation business. Several large companies, including Shake Shack Inc., gave back the money under public pressure.