IAC and Turo announced on Thursday that IAC has agreed to invest £201m ($250m) in Turo, the world’s largest peer-to-peer car sharing marketplace. IAC’s capital will accelerate Turo’s growth and strengthen its global leadership position. With this investment, IAC will become the largest shareholder in Turo with rights to expand its ownership over time.
Joey Levin, CEO of IAC said, “We like marketplaces. Turo has incredible scale and is benefiting from clear network effects in a very large market where consumers want better, more tailored experiences perfect for IAC.
“Just as we’ve seen with travel, dating and home services, technology is accelerating a shift in the transportation space as the economics of car ownership change and the more than £48bn ($60bn) global car rental market faces disruption and expansion with peer-to-peer car sharing services like Turo taking hold.
“Turo has built the best product and proven out the model, and only just begun to penetrate the market. We’re excited to back Andre and the winning team at Turo, and hopefully this investment is a good start.”
Turo continues to gain momentum since its last round of funding nearly two years ago and now has a vibrant community of over 10m members and nearly 400,000 listed vehicles. Turo has been growing 2x year-over-year the past two years, with its newest international markets (UK and Germany) growing even faster at 8x year-over-year.
Andre Haddad, CEO of Turo said, “We are thrilled to have IAC as a partner.
“IAC wrote the script on how to build and scale marketplace businesses and we look forward to their active involvement. We are proud to welcome IAC to the Turo family and aid in our mission of putting the world’s one billion cars to better use.”
As part of the deal, IAC CEO Joey Levin will join Turo’s Board of Directors. IAC’s investment brings the company’s total funding to £377 million ($470 million). Turo plans to invest capital from IAC to help accelerate growth and refine the customer experience.