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Car-sharing firm Getaround to pay Washington, D.C., $950K settlement for operating without a license

WASHINGTON — Getaround Inc. will pay $950,000 to Washington, D.C., and revise its business practices after allegedly misrepresenting the advantages and nature of its automobile sharing companies and failed to pay metropolis gross sales taxes, District of Columbia Attorney General Karl Racine mentioned Friday.

The San Francisco-based company had operated without a license in DC, Racine mentioned in a assertion, including Getaround will pay restitution to automobile house owners who skilled theft or harm to autos listed on the platform.

Customers can use Getaround to hire autos by the hour or day from particular person house owners who make autos out there by the Getaround platform. Getaround didn’t instantly remark.



Car-sharing companies in Washington are topic to a 10.25 p.c gross sales tax.

“Gig economy companies must abide by the same rules as their brick-and-mortar counterparts. They must provide clear and accurate information to consumers, especially about the safety of their services, and they must pay their fair share of taxes like everyone else does,” Racine mentioned.

Racine’s office started investigating Getaround in early 2020 after it acquired experiences of a rise in auto thefts of vehicles listed on the Getaround platform.

Racine mentioned the settlement resolves allegations Getaround misled customers “by using phony owner profiles for fleet cars actually owned by Getaround.”

Getaround additionally agreed to “maintain written policies to ensure timely investigation and resolution of user complaints regarding damage or theft to vehicles on the Getaround platform.”

In October, Getaround raised $140 million in extra enterprise capital funding. The company has raised a whole of almost $600 million because it was based greater than ten years in the past and in earlier rounds was valued at greater than $1.5 billion.

Getaround operates in over 100 U.S. cities and greater than 850 cities worldwide.


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