Kyte rental car startup is shutting down less than a year after massive layoffs and pulling out of most U.S. cities. The company sold its customer list to Turo in July before entering a form of receivership in California, according to a notice sent to creditors.
The trouble started earlier this year when Kyte fell behind on loans. Its top lender repossessed and liquidated Kyte’s vehicle fleet.
Kyte’s board tried “various capital solutions” to save the company but failed to secure funding. They voted to wind down operations. 
Customers who prepaid for rentals are stuck waiting on refunds. Many report no luck getting their money back.
Kyte CEO Nikolaus Volk told TechCrunch:
Charge-backs may be the quickest way for customers to get that money back.
Founded in 2019, Kyte offered on-demand rental cars delivered directly to customers, owning its own fleet. It raised over $300 million and expanded to 14 markets, branding itself a top Hertz competitor.
But 2024 started unraveling Kyte. Volk revealed the company struggled with cash flow in cities like Atlanta, Chicago, Boston, and Washington, D.C. They focused on San Francisco and New York City but ultimately could not turn a profit.
This isn’t isolated. Getaround shut down U.S. operations this year to focus on Europe. TrueCar founder Scott Painter ditched vehicle subscriptions after failing to scale Autonomy.
Kyte’s collapse highlights the brutal toll on car rental startups trying to compete in a tough market.
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