As Wall Street prepares for the earnings season, the IPO market is also heating up with a slew of listings lined up for the first quarter. Despite the market uncertainty and economic slowdown, the IPO frenzy is continuing after an exceptionally busy year that witnessed record activity.
Car sharing company Turo Inc. is all set to embark on a new journey by listing its stock in the stock market. In a statement filed with regulators, the company has sought to trade on the New York Stock Exchange under the symbol TURO. Additional information including the IPO size and share price will be announced later.
IPO News: What to look for when Mattress Firm returns to public markets
The Turo platform connects private car owners with people looking to rent vehicles at economical rates, and takes a part of the trip fees. The company, which is probably the largest carsharing marketplace in the world, offers a variety of passenger vehicles for rent in the U.S., Canada, and the U.K., ranging from minivans and pick-ups to premium brands like Porsche and Lamborghini.
Revenue Spikes
The San Francisco-based company’s revenue growth accelerated during the pandemic as the movement restriction made people shun public transport and depend on car rental services. Serving customers in more than 7,500 cities as of September 2021, the company has facilitated more than $1 billion of host earnings since its inception. At 1.3 million, the number of active guests more than doubled year-over-year.
In the nine months ended September 2021, Turo’s revenues tripled to $330.5 million, which is also much higher than the revenue generated in the whole of the fiscal year ended December 2020. But, net loss widened to $4.47 per share from $2.04 per share in the prior-year period, hurt mainly by one-time charges.
The Market
The IPO filing comes a few months after China-based online road logistic platform Full Truck Alliance made its stock market debut in the U.S. Though the car rental market is growing rapidly, Turo will have to compete with rivals like Navotar and TSD Rental to secure market share and meet growth goals. Since most of its recent revenue growth was driven by the shift in people’s travel patterns during the shutdown, there are concerns that the momentum might wane in the post-COVID era.
Read management/analysts’ comments on quarterly reports
The company was founded in 2010 by Shelby Clark. Andre Haddad, a former executive of eBay Inc. (NASDAQ: EBAY), has been serving as the chief executive officer for over a decade. The business got a major boost after Daimler Mobility Services, a unit of German auto giant Daimler AG, made a major investment in it a few years ago.