News Summary

Kyte, a rental car startup that once positioned itself as a strong competitor to Hertz, has ceased operations following significant financial difficulties. Founded in 2019, Kyte offered on-demand rental cars delivered directly to customers’ homes, managing its own fleet of vehicles. Despite raising over $300 million and expanding to 14 markets, the company faced challenges generating free cash flow in major cities like Atlanta, Chicago, Boston, and Washington, D.C. In a bid to focus on profitability, Kyte had previously restructured to concentrate on San Francisco and New York City. However, the startup eventually fell behind on loans, leading to the repossession of its vehicle fleet by its top lender. Kyte’s board explored various capital solutions but ultimately voted to wind down the company. The startup sold its customer list to Turo, leaving some customers seeking refunds for prebooked trips. This shutdown is indicative of broader struggles in the vehicle rental sector, with other companies like Getaround also facing operational challenges in the U.S.