Turo IPO Plans Scrapped & What's Coming Next?

Turo Cancels IPO After Years of Preparation

In February 2025, peer-to-peer car-sharing giant Turo officially scrapped its IPO plans, ending a three-year journey toward going public. The company filed a notice with the U.S. Securities and Exchange Commission (SEC) confirming that its board “does not wish to conduct a public offering at this time.”

Turo originally filed for an IPO in early 2022 and kept updating its S-1 filings throughout 2023 and 2024. Many investors expected the San Francisco-based startup to follow the path of Airbnb and Lyft, but instead, the IPO was withdrawn amid mounting challenges.

Why Did Turo Cancel Its IPO?

The decision to pull the plug wasn’t sudden. It reflected a combination of financial realities, safety concerns, and tough market conditions.

Slowing Revenue Growth

Turo’s growth exploded during the pandemic when supply shortages boosted demand for car-sharing. In 2021, revenues surged by over 200%. But by 2023–2024, revenue growth slowed sharply, raising doubts about its long-term scalability. In 2024, Turo reported $958 million in revenue, impressive but not enough to support a high IPO valuation.

Unfavourable Market Conditions

Rising interest rates, persistent inflation, and global uncertainty have made IPO markets far less attractive. Investors are prioritizing profitability and resilience, not high-risk growth stories. Turo admitted that the IPO market was simply not favourable.

Reputational and Risk Pressures

In 2024, two high-profile incidents put Turo in the spotlight:

• A rented vehicle was used in a fatal attack in New Orleans.
• Another Turo car was linked to a Las Vegas explosion.

Though the renters passed background checks, these events raised red flags for investors about platform safety, insurance liability, and regulatory oversight.

Operational Reset

In early 2025, shortly after cancelling the IPO, Turo announced layoffs of around 15% of its workforce, or about 150 employees. Management said the goal was to focus on sustainable operations and long-term profitability rather than chasing a market debut.

What Was Turo’s IPO Valuation Before Plans Were Scrapped?

When Turo first filed for its IPO in early 2022, analysts estimated the company could be valued at around $2–3 billion. The IPO was expected to raise approximately $300 million in fresh capital, which would have helped Turo expand globally and invest in risk management and technology.

However, by 2024, slowing revenue growth and market volatility made those valuation targets harder to justify. With investors demanding profitability over pure growth, Turo’s expected valuation likely dropped below initial projections, one of the reasons management chose to step back rather than go public at a discount.

Who Owns Turo Now That the IPO Was Cancelled?

Even though the IPO has been cancelled, Turo remains backed by some of Silicon Valley’s most notable venture investors. Major stakeholders include:

• IAC (InterActiveCorp) – a large media and internet holding company.
• August Capital – early-stage venture capital firm.
• Kleiner Perkins – a well-known venture capital firm with investments in Uber, Airbnb, and other tech pioneers.

Because Turo is still private, ownership remains concentrated among these institutional investors, the founding team, and employees with equity. Retail investors cannot buy shares until Turo goes public in the future.

How Does Turo Make Money Without an IPO?

Turo operates on a peer-to-peer marketplace model, often called “Airbnb for cars.” Its primary revenue streams are:

• Commission Fees – Turo takes a percentage cut from each rental, charged to both the vehicle owner (host) and the renter.
• Insurance Partnerships – Turo offers liability insurance and protection plans, which generate additional fees.
• Service & Delivery Fees – Extras like vehicle delivery or premium protection add to revenue.

This model generated nearly $958 million in revenue in 2024, showing that while Turo did not go public, it is still a sizeable and growing business in the private market.

Is Turo Going to Go Public in the Future?

Currently, Turo has no active IPO plans. CEO Andre Haddad and the board have made it clear that “now is not the right time” to go public.

That doesn’t mean the door is permanently closed. If Turo can:

• Reignite strong revenue growth
• Prove consistent profitability
• Strengthen safety and risk management
• Wait for a more favourable IPO market

For now, however, Turo remains a privately held company, backed by venture investors like IAC, August Capital, and Kleiner Perkins.