Kyte’s Final Ride: From High‑Fives to High‑Jumps
Just like a pink slip in a savings account, Kyte – the on‑demand car‑rental startup that once dreamt of beating Hertz – has finally pulled the plug. Less than a year after trimming staff and rolling back to a handful of cities, the company’s creditors received a notice that the firm is now officially in receivership under California law.
What Went Wrong?
- Loans fell behind. Earlier this year, Kyte missed some payments. The top lender seized the fleet and sold what it could, leaving the company with a barebones roster.
- Despite a series of capital attempts, the board couldn’t secure fresh funding. In a moment of brutal honesty, they voted to close the chapter.
- Customers, who had signed up for a car delivered straight to their doorstep, are now stuck waiting for refunds that might never arrive.
What Happened to the Cars?
Kyte sold off its customer list to Turo last July, hoping the hand‑off might breathe life into a new venture – but instead, it was a quick tumble into insolvency. The company tried to keep afloat by restructuring its operations, focusing on San Francisco and New York, but the cash flow crunch in key markets like Atlanta, Chicago, Boston, and Washington D.C. proved too steep.
Customers’ Tales
- “I booked a car for a trip and now I’m stuck waiting for a refund of over $200.” – One frustrated user.
- Some returned the old “credit‑card charge‑back” trick and got their money back fast. Others, unfortunately, did not.
- CEO Nikolaus Volk said that charge‑backs may be the quickest way to recover the funds, but it’s a game of luck.
Final Note
Kyte’s story is a warning that the rental‑car space is anything but smooth. It grew to 14 markets, raised more than $300 million, and laid claim to being the “best competitor to Hertz.” Notice: eight years of ambition ended in a slap‑down, snappy counter‑ticket. Chase your dream, but always guard against a quick stop‑sign.
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Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise.
Things Aren’t All Smooth‑Sailing on the Car‑Sharing Street
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It turns out that Kyte is not the lone wolf messing up the ride‑share scene – especially over here in the U.S.
- Getaround put the brakes on its U.S. operations in February, handing the reins to its European core.
- Meanwhile, TrueCar founder Scott Painter shook off the vehicle‑subscription dream in 2024 after a tough bout of trying to launch Autonomy.
So, if you thought car‑sharing startups were a guaranteed hit, think again: the market’s proving to be a bit more slippery than they’d hoped.