Carsharing company Getaround to pay Washington, DC a settlement of $ 950,000 for operating without a license

WASHINGTON – Getaround inc. will pay Washington, DC, $ 950,000 and revise its business practices after allegedly distorting the benefits and nature of its carsharing services and failing to pay the city’s sales taxes, the district attorney general said on Friday. Columbia, Karl Racine.

The San Francisco-based company had operated unlicensed in Washington, Racine said in a statement, adding that Getaround will pay compensation to car owners who have suffered theft or damage to vehicles listed on the platform.

Customers can use Getaround to rent vehicles by the hour or by the day from individual owners who make vehicles available through the Getaround platform. Getaround did not immediately comment.

Carsharing services in Washington are subject to a 10.25% sales tax.

“Companies in the gig economy must follow the same rules as their traditional counterparts. They must provide clear and precise information to consumers, including the safety of their services, and they must pay their fair share of taxes like everyone else does. , Racine said.

Racine’s office began investigating Getaround in early 2020 after receiving reports of an increase in thefts of cars listed on the Getaround platform.

Racine said the regulation resolves claims that Getaround misled consumers “by using false owner profiles for fleet cars actually owned by Getaround.”

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

In October, Getaround raised $ 140 million in additional venture capital funds. The company has raised a total of nearly $ 600 million since its inception over a decade ago and in previous cycles it was valued at over $ 1.5 billion.

Getaround operates in more than 100 US cities and more than 850 cities around the world.